Well, we are certainly living in interesting times and many are wondering how the property market will fair through this pandemic.
Real Estate Agents are the ones at the “Coal Face”. Discussions that we have had show that buyers are still interested in looking, however unsure about when they will actually commit to buying. Understandable, nobody is sure how this one will play out. It does depend on how soon restrictions are lifted, the longer the pandemic lasts, the more devastation it will cause to the economy.
I was talking with a client the other day how the base of the local economy can affect how the property market will fair in adverse times.
We do a lot of work in an area known as the Atherton Tablelands. It tends to hold much steadier in adverse times. If we look at the industries surrounding, we see that it is largely agriculture. Agriculture in this area is labour intensive and requires a broad range of support industries. The sector typically involves long-term investment, even multi-generational enterprises.
With travel restrictions in place, closing of restaurants, you have to feel for the tourist hubs. From all reports, it appears as though overseas travel may be a while away. The longer the pandemic goes, the more these areas will hurt. These markets tend to attract a lot of investors as well who are more likely to sell a property if it is causing them to lose money.
In my early career, I worked around the mining towns of Central Queensland. These markets are largely directed by what is going on with the mines and almost ignoring other global events. Unless it affects the mines obviously.
It will certainly be interesting to see how the world works through this pandemic. I haven’t been part of an event where such government imposed restrictions have crippled parts of the economy.
We’ll have to see what happens.
Nothern Property Valuers