Coronavirus & The Property Market

Coronavirus is certainly the buzz word of the moment. We’re already observing its immediate impact upon tourism, travel, international conferences and education with more fallout expected. In the property market, it's a sign of the times there’s a degree of caution with both buyers and sellers - especially with these headlines

Best housing marketing in a decade could succumb to coronavirus

Housing could be hit hard

Yes, the virus is a significant issue to us personally, our businesses and the community. However, it is possible to avoid panic stations and keep our head.

In his latest video (which you can watch below), Tom Panos addresses coronavirus and its impact on the real estate market. With a schedule seeing him frequenting airports catching 15 flights a week, he’s certainly seeing a lot less people around. But despite the media coverage of a global pandemic, the real estate market is still strong - Tom saw a 75% clearance rate of auctions in Sydney across the weekend.

In Tom's words: don't get caught up in the hysteria.

So let’s reflect on the two sides to the COVID-19 coin in property and business:

The not so bright and shiny side sees

• Home opens down - with hand shaking a no-no
• Commercial tenants experiencing negative effects, particularly the Asian demographic
• Uncertainty leading to a reluctance to enter business transactions, with potential buyers pulling back to wait for better times as business owners pull back on capital expenditure
• An unsettled global economy
• Many businesses not being reactive enough to the pandemic
• Media saturation

And then there’s the positive side

• Private appointments and inspections lead to a more qualified sale
• A volatile stock market means financial security is looking to real estate, prompting people to push into the property market now
• Low interest rates in a red hot real estate market
• A private corporate sector proactive in preparing and protecting their workforce.
• Food retail and pharmaceutical industries emerging as big winners

The Conclusion?

Lean in and ride the wave. Stay healthy and smart and look after yourself. But most importantly, stay calm.

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