Corona Virus portrays the worst global pandemic; the world is facing. Almost all the markets are facing big challenges in Covid-19, and the real estate is no exception. Corona Virus have amplified the variation in Australia housing market in terms of locations, property types, as well as the prices. But there is one more side that everyone ignores, i.e. property market is considered as the safer option which remains in demand, no matter what the situations are.
If we look through the history, during the Spanish flu pandemic that was happened in 1919 and is judged identical to Corona Virus; in that case, people were flocking towards Australia housing market considering it as a secure option.
The demand for real estate always depends on the population, and the population growth rate in Australia is an average of 1.6% increase every year. This implies that property is a need, and the real estate market will always remain rising even when it comes to some crisis.
Impact of Corona Virus
Undoubtedly, like any other industry, real estate is affected by Covid-19. The Australian property market was going into recession, and the prices dropped by as much as 5% to 10%.
Through April-May 2020, it was definitely a buyer’s market. The situations brought a great opportunity for the buyers who were looking for affordable options to buy their dream home or some investment properties.
With the introduction of ‘Government’s Home Builder Scheme’, the Melbourne housing market is seen likely to improve by the second quarter of the year. It was an excellent initiative for first home builders.
It’s undeniable that this crisis affected the property prices, putting vendors in thoughts. Here, the point is- how would people buy homes when there are no sellers? So, indirectly the opportunities of a potential sale also arose for vendors, especially for those who were not able to sell their property due to high competition. Corona Virus brings up serious buyers who really wanted to a good sale.
Time to reveal the unseen side:
The predictions of prices don’t make sense in the property market as people are aware of only the one side. According to some economists, from the start of the year till March 2020, the values of properties were up by 12% and as we discussed there was a recession of 5 to 10 percent.
Thus, if we compare the price with 2019, the Australia housing market is still in profit!
- Australia housing market goes digital
A transformation to digital platforms become a trait of the real estate market during the crisis. Vendors are embracing solutions to sell house quickly through video tours to virtual home assess while buyers are scrolling through their mobiles to find a perfect home.
Online platforms allow buyers and sellers to transact a smooth process of negotiation throughout the time of lockdown and social distancing. It’s certainly powerful to follow virtual appraisals and use online channels for quick and transparent deals.
- Melbourne housing market
In early Covid-19 time, sales across Melbourne and the whole Victoria were reduced due to insecurity in minds of vendors. It was then revealed that buyers are consistency viewing the market and looking for some great properties.
As we discussed in our unseen side section, the prediction of prices was just useless. The sellers who realized this and resisted short-term thinking got great offers and sold their properties even in the time when people were backing-off from the market.
More significantly, it is worth noting that just after the few months since Covid-19 came, the level of the Melbourne property market has returned to the same pace.
What to do NOW?
Every uncertain time brings some great opportunities as well. All we need is to have an eagle eye to see what’s best for us.
Let’s find how the ongoing situations might be in your favour!
Tips for Buyers:
Impact of Covid-19 on the real estate market is already in favour of buyers. Still, when prices are getting back, and the volume of properties is low, there are houses for sale in Cranbourne and Clyde North. Here are a few tips that would help buyers make smart decisions.
- Go through a virtual walkthrough of the property that attracted you or asks the agent to conduct a video call and show you the complete property.
- In case of a private sale, ask for first right of refusal when making an offer to keep a safe side in case of the high bid.
- Go the website of the vendor’s agent to get details about the amenities in the area where you are going to buy the property
- If you are buying for investment, make sure to calculate the financial benefits first.
Tips for Landlords:
Due to the economy changes and Government orders, investors are facing hardships. Here are the smart tips for landlords:
- Don’t evict of any tenant as per government guidelines as this could create bad impact on your investment plans in future.
- Master the art of negotiation as per the code of conduct introduced by the Federal Government.
- A reduction in tenants’ rent (if they request) could help you reach better relations and ultimately better finances in future.
- Seek for the suggestions from bank or accountant in case of loan payment issues.
Tips for Sellers:
Don’t let the scarcity factor resist you from reaching the right price. Follow these tips:
- Engage in virtual appraisal and online negotiation to save your time.
- Invest in quality marketing. Work with your agent to display good pictures and videos of your property for a great offer.
- Consider negotiation to ensure receiving a great competitive offer.
If you were thinking of selling the property before Covid-19, then it is the best time to get back in the market and sell house online. Advertise your property through online platforms and receive great offers. Move on with your decisions and book your virtual appraisal.