By Deepti Sikka
MELBOURNE, 13 July 2020: The COViD-19 pandemic globally including Australia is changing life at a fast pace. In Australia, the curve has been flattened but the second surge in Victoria and to some extent NSW is causing concern. This is unlike anything we have ever experienced leaving its impact on all facets of life. Many things seem to be different in the socio-economic fabric never thought before.
In the lockdown state, most of the workforce is working remotely. The new reality is gradually becoming a way of life. According to recent surveys, most employees are happy to continue working from home.
With this realization people who are choosing to call outer suburbs “Home”. With the commuting time going down and attaining the luxury of open spaces people are preferring to move towards the outskirts.
Real estate is impacted in a way like never seen before. The rental portfolio is clearly undergoing a massive change with people’s demands and lifestyle changes. As per the recent study conducted by Domain.com there has been a noticeable shift in the housing rental market.
The table demonstrates a holistic view of all states, however fewer suburbs have been impacted more as compared to others. High-density inner-city neighborhoods recorded sharp price drops, with Docklands unit rents falling 8.6 percent in the year to June, the CBD down to 7.4 percent, and Southbank down to 7.1 percent.
In the current economic crisis, the last few months have forced many households to think differently about how they work and manage their financials, the “priorities have clearly changed”. With massive unemployment, wage cuts, business failures, and job uncertainty, many people are likely to be cautious about – buying a home.
Property Manager, Ray White, Nitu Grover, talking to South Asia Times, said,” There is a market shift”, increasing numbers of buyers are turning towards renting”.
A lot of people have let off buying a new home. People are holding on to their investments until things get back to normal both from the buyer’s and sellers’ perspective. Sellers are holding off listing their properties for sale, while those who have their properties on the market are hoping for a private sale.
However, there is another view to the property market- with the low housing prices and low-interest rates, this could be a good time to buy into the property market for those who can afford it. As per Jasmine Grover, a working professional,” It depends on personal circumstances, I see the current market as an opportunity to invest, possibly grab an elite piece of real estate that was out of reach earlier. Prices are dropping, create a safety net around savings, and invest with residual. Perfect time to get a bargain if you are a risk-taker.”
Buying now or hold off is a decision that care should be sought after. In the current economic scenario investment into the property should be cautiously considered by conducting thorough inward and outward research.
Visibly the year 2020 has been harsh on most of the business, it’s been a hard year for the economy, the property market has not been immune to the economic fallout either but how big the impact would be will only be realized once the market rebounds.