The Surge After The Scourge: What’s to Happen with Australia’s Property-Market Post-PandemicOctober 21, 2020
Post-apocalyptic movies and novels picture a world full of despair and destruction. Houses, communities and cities completely were torn apart. Businesses and lives, destroyed and not a semblance of humanity is evident. Every man for himself mentality is prevalent, and hope is almost lost. Those were the results of science-fiction global catastrophes that people—at least in those movies—are not prepared to face.
But the reality is so much kinder than its movie versions. Today, the world is facing a real-life pandemic which threatens our survival. But even so, we are looking at a silver lining—at the Australian property market to be exact.
The Property Market’s Fight
Australia’s property market is showing an exceptional fight despite the entire economy and job industry fluctuation. At the beginning of the year, the housing industry braced for a September cliff. For a time, people felt hesitant to invest in any considerable expenses, such as buying a new property. But as the trends change, so did buyers’ mindset.
JobKeeper, a payment scheme that serves as a temporary subsidy for businesses affected by the pandemic, which was getting cut out in September, was extended. The cliff turned into a gentle slope due to the government’s significantly good fiscal position at the end of 2019.
No one saw the stability of the property market coming given the restrictions brought about by the Covid-19 pandemic, but here it is standing firm. What’s even more surprising, is how the projections are showing in the years to come.
Much like the rest of the world, Australia also took a direct hit from the pandemic economically. Luckily for the property market, the banks and the government came in prepared to provide financial support.
Fiscal Support and its Effects
For starters, first-time homeowners are offered a $25,000 grant to build their new home. Yes, early this June, Prime Minister Scott Morrison announced the HomeBuilder program. The grant also aims to create jobs and projects to kick-start activity in the housing sector. This initiative creates a cycle of new homes and renovation projects that translates to more jobs and gives the economy the boost it needs.
Aside from the HomeBuilder program, the Australian government with the Australian Banking Association (ABA) announced that their member banks would extend mortgage freezes for people still affected by COVID-19 lockdowns.
The support received by the property market and the housing industry is substantial to give it a push to outlast the 2020 slump and further. The issue now is, no one can really tell when the pandemic would last, or if it would go away. Vaccines are on early clinical trials, so there’s no telling when things would go back to normal. Some are speculating that the virus is here to stay and that humanity will have to live around it.
As for the future of the Australian property market, it looks bright. Taking into consideration other industry’s economic slump also affects that of the property market—and that unemployment is also on the rise—the housing sector seems to be on the path of a breakthrough.
CBA’s loan deferral period extends until January. Initially, when they started their loan deferral program in March, it was a temporary six-month measure. But due to Covid-19’s continued onslaught, the bank was willing to make that significant loan deferral extension up to next year.
Meanwhile, NAB offers support by, on a case-by-case basis, allows their eligible customers to be still able to pause their repayments. However, no repayment pause will be permitted to end later than 31 March 2021.
Eligibility criteria apply to all NAB home loan customers, including owner-occupiers and investors financially affected by COVID-19. They have either principal and interest or interest-only repayments, variable or fixed-rate loans.
It’s also worth noting for NAB that during a repayment pause, interest continues to accrue on your loan and there is no change to the way we calculate interest. It merely defers repayment obligations.
The Australian government also sees the property market as its strongest contender in bringing the economy back to life, post-pandemic and will give it its full support. In effect, the housing and construction sector creates more jobs. More jobs mean more debts getting paid, and banks are still earning revenue—and the cycle continues.
The question now is, will people buy into this cycle and invest in building or buying their new homes?
Is it worth Buying/Building your Dream House Nowadays?
As mentioned earlier, it’s quite understandable why people are sceptical in making such investments. Buying a property or starting a construction build and design project in the time of a pandemic certainly comes with unseen risks but merits its rewards.
In the end, it falls on you—the buyer—to make that decision. It would be wise to weigh out your options and consider the current market price and the foreseeable property price. Take note that despite the pandemic, the country’s economy is heading for a resurgence post-pandemic and the property market sitting in the driver’s seat.
Build With Us
Making that decision of buying or building your forever home takes a lot of courage, especially amidst a pandemic. Choosing the right partner in this tremendous undertaking is as important as buying or building the house itself. After all, you deserve the best services and value for your money.
That said, BuildQ properties are certainly a great choice. Our home and land packages are located in prime locations, at the same time, suitable for most budgets.
Choose a win-win purchase where you can get comfortable living spaces perfect for the life you’ve always dreamed of.
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.
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. Our build history, completed projects, and customer reviews will help you with your decision-making process.
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 to us.
We are the BuildQ Group – builders you can TRUST.