COVID-19 Property Market Update

The COVID-19 pandemic has given rise to a new wave of uncertainty, and the property market is not immune to this. We understand there may be a lack of clarity regarding the current climate, so we have put together a very brief high-level property market update:

  • Properties continue to be sold / purchased
  • Inspections continue to take place
    • They are now being carried out privately by appointment 1-to-1 with the selling agent rather than in open home situations
  • General methods of sale are changing, and private treaties will be the prominent method of sale (even in some traditional auction-centric geographies)
    • Online auctions will continue, however many agencies are shifting their sale methods almost entirely to private treaty situations (e.g. Bresic Whitney)
  • There will be an increase in “off market” property opportunities / transactions
  • Over the COVID -19 Period, auction clearance rates may become a less reliable measure of the market
    • In the week where the government introduced bans on all open homes and public auctions, the Sydney auction clearance rate was 38%, down from a peak of 84% in mid-February 2020
    • This is largely due to the current market uncertainty, reluctance by vendors / purchasers to adapt to online auctions and a substantial increase in private treaty purchases
  • There may be an increase in vendors looking to sell in the short term in order to maximise their property prices
    • This may potentially lead to an increase in supply levels and a possible shift into a buyer’s market
  • We believe there may be good buying opportunities in the short-to-medium term albeit this will be dependent on supply levels

Should you have any further questions feel free to reach out and contact us as we are happy to discuss further. In addition, we will continue to monitor the market during this uncertain time and keep you updated.

 

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