Buying property in an uncertain world
With COVID-19 dramatically changing the way we live our lives, many are wondering what the fall out will be for the property industry, and, if it is a good or terrible time to buy?
Just weeks ago the market was performing strongly – listings were strong, enquiries building and even first home buyers getting back in the market, stimulated by continually falling interest rates.
These buyers are still out there and are likely wondering what to do.
There is no easy answer, but below we’ve collated a range of commentary to help people as they navigate these times.
Over the past few weeks we have seen stocks plummet, but REA has a range of data that demonstrates property values are unlikely to take a major hit even when stock markets and currency values take major hits. In this piece the group shows how the housing market has historically performed relatively well after economic shocks – citing Black Monday in 1987, the early 1990s recession and the global financial crisis. Experts in this market make the point that housing isn’t a liquid asset and it remains a consumption good.
Some buyers feel that right now is their moment. Domain speaks to a range of buyers and agents in this piece who are in the market, have cash deposits and are still on the hunt. Agents quoted say that stock will decrease during this period of uncertainty, possibly driving up competition among those wanting to make a deal.
Melbourne Square’s own agent, Andrew Leoncelli from CBRE, says there is continued interest in the off-the-plan market. Buyers are recognising property is a secure asset and the long lead times of off-the-plan sales is luring many still.
Late last year as the market emerged from a slower period, the Reserve Bank of Australia and Urban Development Institute of Australia were both predicting a housing shortage that would give rise to a price boom. These predictions came off the back of construction activity cooling off, limiting the number of new houses coming to market. That hasn’t changed. In fact, just one new apartment building commenced construction in Melbourne’s CBD precinct this year over in Docklands, meaning new supply will take some time to arrive on the scene even when COVID-19 is just a bad memory.
At OSK Property we will continue to cater for those in the market or those who want to stay abreast of real estate during this period. We are working to bring you virtual apartment tours and deeper content that you can view in the comfort of your home. We are also taking private inspections to view apartments and our display suite and offering e-contracts.
If you have any other suggestions on how we can keep you updated during this time, please contact us through the website.
Enquiries - https://melbournesquare.com.au/