COVID update: When we try to break down the COVID-19 world and market place, the overarching theme is that we appear to be in a in a state of flux.As we moved further down the line through April and into May (about eight weeks), stock levels continued to remain extremely low with no significant increase in property listings. Pressure on owners to sell remains limited but this may be delayed until the various support and stimulus packages come to an end (government’s Job Keeper allowance and bank mortgage holidays).
When reviewing valuations of sales completed by our office and specifically properties contracted during April and into May, in excess of 95 per cent of the sales show a discount of five per cent or less from the list price. Also, 98 per cent of the sales occurred within 90 days. As previously stated, it remains extremely important to understand the circumstances of any sales that transact in this period.
- As COVID-19 infection rate results improve and the restrictions start to ease, there is a feeling that there is some light at the end of the tunnel. Subsequently there have been reports that overall enquiry has increased and open homes are resuming.
- Some of the demand has been in the pipeline for some time from a combination of potential purchasers who were in the market prior to the restrictions and upgraders and investors who sold in the first quarter of 2020.
- Interest continues to flow with both capital city and ex-pat international purchasers looking to secure property on the Sunshine Coast. Some of this is being fast tracked.
- Should this demand be absorbed and if there is an increase in supply in the coming months, it will be interesting to see if there is an increase in new demand to fill the void.
- Some new purchasers are wanting to find a bargain, although this is not apparent in the market to date, especially in highly sought after areas.
Source: Herron Todd White, June 2020 report