Here we look at whether Coronavirus could actually see the Property Market rise. Amid odd behaviour across the globe and turmoil amongst the stock market, analyst and seasoned investor sentiment is that property markets may benefit from this pandemic.
It’s certainly a concerning time globally as we are met with a wave of uncertainty about this ever growing issue. In the last few days we have seen stocks take a belting as investors lose confidence in their shares. The stock uncertainty could see investors move over to the tangible benefits of property.
At this point the Coronavirus crisis looks like it is only just starting here in Australia. Unfortunately, exactly what the future holds is impossible to predict. As we’re not health experts, we have no place predicting what will happen with this virus, but what we do know is property. We will stick to commenting on the facts and how the next few months might play out.
The market as we speak, and certainly before the coronavirus began worsening, was offering the best buying conditions we had seen in 2+ years. For those not caught up in the media fear-mongering (whether valid or not, of course please stay safe and minimise risk to yourself and others!), there still looks to be plenty of value in the market, and as punters start to retract again even more deals could start to appear.
The current realities of the market:
- Record Low Interest Rates mean debt is at it’s most affordable (More bang for your buck)
- Property as a tangible asset and prices could potentially rise as stock assets are converted to property
- Eased lending restrictions offer increased opportunity to buyers who were previously held out of the market (Investor sentiment anecdotally gets in before these changes)
- Housing affordability at pre – 2017 levels
- A quick resolution to the crisis could mean a dramatic rise in the second half of the year
“Expect to see new highs for property in the coming months as the RBA adds more support via lower rates. This should eventually help improve housing sensitive sectors” Chris Rands, Nikko AM portfolio manager said.
The sentiment on the inside of the industry is that amongst the chaos, opportunity remains. Those who choose to capitalise can jump ahead of the crowd. ‘Hold and Buy’ or ‘Hold and Watch’ seems to be the sentiment of the majority; however, some panic is still present.
As with anything, we advise you to do your own research, consult with as many professionals as possible, and evaluate your position accordingly before making any moves.