- October 27, 2020 at 10:39 am #26435zapkingParticipant
I have been following the property market in Australia for the last 5 years and I have always been of the opinion that there is a set cycle through which properties rotate. With COVID-19 impacting the economy in ways unseen in the past I wonder if this impact will fundamentally change the cycle and our understanding of the property market?
This seems like a good forum to discuss such a topic hence thought I would share.
- October 27, 2020 at 10:50 am #26436menotyouParticipant
I think the guys at HtAG actually had an article published about that at the onset of Covid, and from memory, there was an impact but nothing substantial. Personally, when it comes to how the market is performing, I think Covid will have the same impact as any other minor recession although the reasons behind this market impact have switched from a unsustainable banking practices to viruses.
When it comes to how business is conducted, this will change. We will probably see more online inspections and auctions but in saying this I believe the demand for housing will not be adversely affected or more than at any crisis as populations continues to grow and there will continuously be demand for housing, whether through increased rents or purchases.
I guess what I am trying to say is that Covid might have an impact on how business is conducted but I personally believe profit maximization as one of the primary aim of every business will continue to drive decision making and in doing so will maintain pressures on housing demand—nothing will change dramatically. Maybe we will see a change in the demand portfolio where people are moving away from acquiring detached homes to buying apartments but overall, the demand will return to normal and I don’t see people camping in on green pastures as a replacement to housing demand.
Team HtAG, would you be bale to provide the link of that article you published on the impact of Covid on median prices? Or maybe provide an updated version?
- October 27, 2020 at 12:49 pm #26442AlexKeymaster
Here is the link to the article – https://www.htag.com.au/covid-19-impact-on-australian-property-market/
Main call out is the decrease in listings throughout the country. Since the article was published the listings are slowly returning back to pre-lockdown level (with the exception of Melbourne).
There is a noticeable uptick in vacancy rates in CBD suburbs as well as moderate median price decline in the same suburbs.
- October 27, 2020 at 1:51 pm #26443menotyouParticipant
Thank you Alex. Can we say that customers are shifting away from CBD elsewhere? Meaning, is there an decrease in vacancy rates somewhere else in response to the uptic in vacancy rates in CBD? Are people moving to the subrurbs or juts moving inot family homes?
- You must be logged in to reply to this topic.