The world is facing one of the biggest economic crises because of the COVID-19 pandemic that has shaken the world adversely. Every business has been affected in an extreme way and the Australian real estate market is no different. At the end of 2019, the Australian property market was booming and in capital cities, the property prices were on the rise and there were high auction clearance rates. The start of 2020 was also positive for people looking to invest in the Gold Coast, QLD areas, and various other prime locations. They thought that this is the time to invest in property and many homeowners were thinking to re-enter the property market, but then came COVID-19 and everything changed.
No, the prices of houses were relatively resilient and it was because of low listing volumes and sellers were not selling because the prices went down. The complete buyer and seller process was turning out to be a disappointment.
Many thought that it is a temporary phase and vendors were thinking that let’s hold our real estate agents Broadbeach Waters, Queensland, and of any other area to buy or sell because the economy will move again and we can think about it later. Banks asked the borrowers to halt the mortgage repayments and also avoid the sale of the property.
One of the well known real estate agents “Julie Hatch from Cobden & Hayson” threw light on the changes and said “When there were restrictions people did not know how to react immediately and though we still have the properties on the market the interest of the buyers have declined and instead of 20 buyers now we have just 4 to 5 buyers. Though there are little adjustments made in the prices because the stock is not enough so the price is stable and vendors have secured better prices”.
Technology changes have also proved fatal because virtual 3D tours for marketing campaigns to help the buyers see what is there in the property is of no use.
She also said, “Such restrictions have made the real estate agents Broadbeach Waters, Queensland, and of other areas to think what they can do in a different way. They are now using private viewing, online auctions, and a one to one contact to get quality conversation. This caused some genuine buyers to come in front and private treaties became very popular which gave a cooling-off period to the buyers. This was very comfortable for them to make a decision and execute further.”
Property value can still go down and low interest will be there for the heated property market and this can result in a lot of buyers. There is a possibility of a second wave of disruption because banks may not support the mortgage and the JobKeeper package can also be over. That will be the time when the financial status of people will actually be tested because the business will slowly return to trade and there can be some unemployment as well.
It seems that COVID-19 is a big reminder to those looking for property investment in Broadbeach Waters, Gold Coast, QLD areas, and Queensland that property is no longer a long term investment and it shouldn’t be taken as the quick way to earn money.
