Last month we wrote about the effects of Coronavirus on our property market. Today we just want to give a quick update on the state of play.
With government restrictions and social distancing, we have adapted and changed processes to move forward, trying to limit the impact on all involved. Technology has made things easier and will continue to do so. Now with the easing of restrictions slowly taking place, we will see a return to some of the past methods operations.
As predicted the market slowed down. Not being able to hold open homes or auctions coupled with the higher unemployment rate meant that the sales slowed. At this point, it has not lead to a decrease in prices. The CoreLogic April report from Brisbane actually showed a 0.3% growth in property prices. We may well see a dip in prices in the next few months as the ripple effects are felt but it is not likely to be substantial.
We mentioned that the construction industry would be heavily supported and we have seen this happen with government bringing projects forward to keep people employed and infrastructure moving forward. Builders and developers are offering incentives to stimulate buyers including free upgrades, discounts and rebates.
With the above incentives being offered at time of record low interest rates, it is an opportune time to buy your first home, first investment property or your next one.
By mid to late-2021, when we are largely through this crisis and infrastructure delivery is fast-tracked, jobs rebound across most sectors, and the virus is, hopefully, all but eradicated, we will start to see an improvement in asset values. None more so than those underpinned by land, especially in highly desirable locations close to infrastructure, water (in coastal markets), jobs, schools, entertainment, and lifestyle amenities.
Australians can all be so proud of where we are now. We have worked together to rapidly and convincingly flatten the curve by following the social distancing measures and recommendations laid out the government. It is still important to continue on this path but we are in an amazing position compared to most other countries.
Make an appointment now to discuss how you can help in Australia’s recovery.