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How Covid Affected Australian Housing Market


Introduction The world is facing one of the biggest economic crises because of the COVID-19 pandemic that has shaken the world adversely. Every business has been affected in an extreme way and the Australian real estate market is no different. At the end of 2019, the Australian property market was booming and in capital cities, the property prices were on the rise and there were high auction clearance rates.


Scenario Before & After COVID-19 The start of 2020 was also positive for people looking to invest in the Gold Coast, QLD areas, and various other prime locations. They thought that this is the time to invest in property and many homeowners were thinking to reenter the property market, but then came COVID-19 and everything changed.

In late February 2020, the crisis escalated and global share markets dropped down. The business and consumer confidence was badly shaken and each day brought some shocking statistical reports in front.


Post COVID-19 Real Estate Market No one could understand that until when the financial impact will remain in place? How much can the virus affect trade and industries? No one can say what Post COVID-19 Real Estate mar ket will hold? It’s a terrible phase for every buyer and seller. The full impact on the housing is yet to be seen, but the time is surely uncertain for any property investment in prime locations like Broadbeach waters, Queensland, and much more


Changes During Lockdown The Government was quite quick in issuing various packages to consumers and supporting the small and medium businesses. RBA also reacted and the official interest was brought down to 0.25% and this happened for the first time outside the monthly cycle since 1997.

Suddenly, there was a lockdown, and people were allowed to step out of the house only if they had to shop for groceries and have a medical emergency or need important medicines. Who would need real estate at this time? On-site auctions and open homes were banned. No property viewing and even if it was, it was via private appointment, and most of the properties were being auctioned online.


Price and Sales Bounced Back? No, the prices of houses were relatively resilient and it was because of low listing volumes and sellers were not selling because the prices went down. The complete buyer and seller process was turning out to be a disappointment. Many thought that it is a temporary phase and vendors were thinking that let’s hold our real estate agents Broadbeach Waters, Queensland, and of any other area to buy or sell because the economy will move again and we can think about it later. Banks asked the borrowers to halt the mortgage repayments and also avoid the sale of the property.


Opportunities The housing market will bounce back if the borrowing cost is low historically and if there was not a full shutdown. Now, people are at home and they could check the properties online and those who never considered buying or selling could consider it now. The buyer and seller actually started to think now.

The government has laid some restrictions like there should be hand sanitizers available and people should be notified about the social distancing rules. These instructions should be everywhere and the number of people seeing the property from inside should also be limited.


Conclusion Property value can still go down and low interest will be there for the heated property market and this can result in a lot of buyers. There is a possibility of a second wave of disruption because banks may not support the mortgage and the JobKeeper package can also be over. That will be the time when the financial status of people will actually be tested because the business will slowly return to trade and there can be some unemployment as well.

It seems that COVID-19 is a big reminder to those looking for property inves tment in Broadbeach Waters, Gold Coast, QLD areas, and Queensl and that property is no longer a long term investment and it shouldn’t be

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How COVID Affected Australian Housing Market  

No one could understand that until when the financial impact will remain in place? How much can the virus affect trade and industries? No on...

How COVID Affected Australian Housing Market  

No one could understand that until when the financial impact will remain in place? How much can the virus affect trade and industries? No on...

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