[SPECIAL EDITION] The impact of Coronavirus (COVID-19) on the real estate market - to buy or sell?

The impact of Coronavirus (COVID-19) on the real estate market - to buy or sell?

The Coronavirus (COVID-19) has dominated the news globally over the last few weeks. Besides the obvious health risks it poses, the virus could also have a serious impact on the Australian economy, with inevitable flow-on effects to our property market also. We think it’s important to understand that some of the potential impacts, both positive and negative, and dispel some of the myths.

What can we expect?

Increased demand

Periods of economic uncertainty will always push people further to property as a fairly safe investment, especially compared to other investment forms such as the share market. Lower interest rates also significantly drive demand, but more about that below.

Price surges

When property demand increases, we know that prices rise, which is always a win for investors in the market, and those looking to sell. Median prices across the country have continued to trend upwards this year, with record-high figures in five capital cities, led by Sydney which saw a 1.7% increase last month.

Potential further cut in interest rates in Australia

As our interest rates are already at record lows, we anticipate that they could be cut even further if economic growth in Australia starts to slow as a result of the coronavirus. Much of the Australian property market’s transformation so far this year can be attributed to the supply of credit, so this is welcomed news.

The reality is, serious buyers are still around and they want to purchase. We have already sold several properties this week for great prices. We understand that some people need to take extra precautionary measures, and we fully support this and have also implemented safe precautions at our workplace and all our inspections – rental and sales. For those not wanting to attend public open homes, we offer private inspections. Contact us today to make arrangements.

We can’t be certain of how the coronavirus health crisis will evolve globally, or measure its true impact on our domestic economy and property market, however it is important to monitor official advice, and stay safe, calm and informed to help you make the right decisions.