Business and Consumer Confidence: The Significant Keys That Hold Australia’s Property Market Amid PandemicAugust 7, 2020
It has been more than half a year since the pandemic tried to play mischief with the Global economy, not to mention, Australia’s property market. Businesses are struggling to stay afloat amidst the economic crisis. It is difficult to find the will to look into the bright side of the situation, especially when the unemployment rate rises by the day. The recovery of the market from recession seems impossible for the next quarter. Melbourne is considering lockdown 2.0, and to top it all off, the business and consumer buying confidence continues to decline.
Despite everything, there’s a ray of sunshine for the property market, after all, amid this sudden economic setback. As recently reported, there are five key trends in the property market in this COVID-19 situation. Let’s take a quick look at it:
1. Buyers are on the lookout for properties
There has been significant growth in the number of home buyer searches as reported by RealEstate.com.au. It is now up 72.5% from the decline they’ve experienced at the end of April, leading us to believe that in the face of the Coronavirus pandemic, property investments are still a wise choice to make. People still buy and sell homes as they need somewhere to live. Apart from this, a higher level of consumer confidence is recorded in June 2020, which means more properties are coming onto the market as compared to the same month, last year.
2. Distressed sales are still low notwithstanding the impending September cliff
Even though the September cliff is fast- approaching, only five (5) mortgagee listings in June out of more than 160,000 were recorded as signs of distressed sales. That’s less than half the number compared to the same time last year.
It is highly-anticipated that some sectors of the property market are more vulnerable to economic and financial challenges, such as neighbourhoods with high rental vacancy rates and foreign student-focused property rentals.
3. Investors may have drawn back, but first-home buyers continue to be active
As the first-home buyers’ activity remains strong in June 2020, we have yet to hear from investors. Off the plan, developments will remain suppressed as demand for house and land projects grows. The HomeBuilder scheme may have resulted in an increase in first-home buyer’s enquiry level, leading to a very strong demand for residential projects.
4. House prices remain steady
You may have been wondering why house prices have remained stable despite the economic crisis brought about by the pandemic. Conisbee stated that a stable banking sector, government stimulus, lack of properties to buy and lack of alternative investments are the major determining factors.
5. The second round of lockdown may hinder road to recovery
The forthcoming lockdown poses a threat as COVID-19 cases increase. The strategic focus should highlight how to preserve business and consumer confidence across Australia, and if successfully done, surely paves the way to a sharp recovery not just on the property market — but to the whole economy as well.
The lockdown has forced the majority of the companies to practice remote work. Many people had to make quick changes in their homes to accommodate their new lifestyle. The pandemic may have transpired and may have stopped the whole world for quite a while now. It doesn’t mean you have to put your life on hold, and your dream home unbuilt.
So the question remains, is NOW the BEST time to purchase your dream property?
Despite these trying times, buyers are still on the lookout for properties and house owners are also purchasing a second home away from the city. They are keen to get their hands on houses they can use immediately. However, despite the rise of property demand, prices remain steady.
Essentially, it means if you have the pocket money or capacity to borrow some, now is a perfect time. Interest rates are low, almost zero. Moreover, keep in mind that buying a permanent home is one of the most significant investments. Having your own in this time is remarkably beneficial, especially with remote work and virtual teams becoming a part of the new normal.
There’s no assurance as to how long this situation will last, so better grab the opportunity while it’s there. Remember that the first step to success is always research backed by expert advice. Gather everything you find useful, and then plan out a strategy on how you can take advantage of the situation.
BUILD WITH US
Choosing the right house design and package involves a big deal of mind work that should pay off in the long run. After all, you deserve the best for your money. In that case, BuildQ properties are a great choice. Our home and land packages are located in prime areas while being suitable for most budgets. Choose a win-win purchase where you can get comfortable living spaces perfect for the sweet life you deserve.
Suburbs in the West, North-West, and South-West have lots of residential areas that are quickly rising in terms of value. These have more space with easy access to amenities. BuildQ’s top selections include properties found in these new star districts such as The Ponds, Marsden Park, Riverstone, Caddens, and more. The best part is in the feature-rich inclusions we incorporate to our projects which have elements clients can customise to their liking.
Checking our building history, completed projects, and customer reviews could help you with the decision process. It’s only fair to know that the firm you’re buying the package from has a good reputation. BuildQ Group has more than 500 projects successfully finished and has a strong relationship with past clients.
At BuildQ, living is not just about having a roof over your head – it’s about how better you can live your life at home. Let us help build your dream house. Sit back, relax, and leave it up to us – We are the BuildQ Group – builders you can TRUST.