Property prices during COVID

No one can 100% predict what this pandemic is going to do the property market but I agree with many economists in that property is not a very fluid asset which makes it more resilient than most asset classes. The level of unemployment will be a determining factor in how property is impacted but even this is a long term, slow process. However, I believe that you don’t have to change your financial goals. Actually, there are good reasons why now is the perfect time to put your investment plans in place.

While some headlines would have us believe that the property market is in meltdown, the truth is that the pandemic has had a minimal impact on prices so far – certainly not the drastic 30% drop that has been suggested. What we’re now seeing in Australia is closer to a 5% fall in property prices and that’s only in some specific areas. Good quality houses in good areas will be relatively unaffected like the Sunshine Coast where I work and live.
In fact, the Sunshine Coast is currently experiencing over 7% growth, rental returns are still strong at 5% and demand is high. It also makes sense to borrow money, as interest rates are the lowest they’ve ever been.

Making property predictions is hard, especially in these uncertain times. But what we do know is that property markets have proved remarkably resilient so far – they haven’t ‘fallen off a cliff’ and there are no indications from any sector that they will.

Factor in, too, that our little pocket of paradise on the Sunshine Coast is more popular than ever, with more and more people moving here, driving property demand even higher.

Remember that property is a long-term investment – 10 years, maybe more – so investors shouldn’t base their investment decisions on today’s headlines, plus the current economic climate will be history in 12 to 18 months. Quality property in popular areas is still, and always will be, a sound investment.

For motivated investors, there are solid buying opportunities in the market at a time when there’s less competition, interest rates are at an all-time low, property prices are relatively stable and migration to Queensland and the Sunshine Coast is on the rise.

 

We are looking to buy our first house in the Perth northern burbs under 400k. Cash buyers. It seems many are selling quick and stock is low. Should we wait a couple months (which we can) for a further drop or jump on something? Nothing great at the moment. I'm getting conflicting info on the direction prices are heading.

 

Hi, I'm really only an expert in the Sout East QLD market so not sure what is happening in Perth. I generally think however those who sit back and try to time the market, often lose out. If you've found a hose you like and it's in your budget, I'd go for it.

 

Hoses are a bit cheaper than Houses.

 

We want a place on the Sunshine Coast and agree it’s holding. How’s employment?

 

The question is once Sydney and Melbourne market stabilise and begin to rise, whenever that may be, would the price rise in smaller centres like Sunshine Coast hold or drop off?