Updated: Mar 25, 2020
WOW! In just a short 2 weeks, a state of emergency has been declared in Victoria and Australia Capital Territory, as the COVID-19 coronavirus infection count doubled or tripled in some states. How would this affect the property outlook?
Things are going to be volatile. That is definite. As states start adopting measures to limit the spread, things will vary from state to state, depending on the severity of the problem. But some form of lock down is looking likely.
How will that translate to property prices in Melbourne, Victoria? Buyer are starting to hold off their purchases. They are starting to uneasy and believe house prices will fall. They could be right. However, vendors or sellers still have an expectation, many are not yet prepared to sell, as they do not have to. What does this mean? Residential property prices will stay stable. We're not likely to see any significant rise in house prices, neither are we going to see a significant drop in house prices. It will be a different story, with commercial properties, though. Any lock downs will affect commercial properties negatively.
What happens in a lock-down?
It is anybody's guess at the moment what that will look like, given that different countries and different jurisdictions can have different rules on what can or cannot be done. Some impose curfews, only allowing residents to get out of the house on certain days of the week, some simply do not allow residents to enter or exit restricted zones.
In the event of a full lock down, office workers will be working from home, business can still go on. In the age of electronic transactions, this is not likely going to create an issue with transactions and activities which can be done electronically. However, some inspection activities such as building and pest inspections, is highly likely going to be affected.
What will a property investor will do?
With a seasoned investor, such times are gold! As Warren Buffet puts it:
"Be fearful when others are greedy and greedy when others are fearful.”
A good buying time is when no one is buying. You've less competition when buying. You could even pick up a good bargain, if you look at the right places.
How do you buy in a full lock down?
At Concierge Buyers Advocates, we have a COVID-19 Response Plan. We have the necessary processes, experience and a network of professionals whom can make this happen. Most of our transactions are done electronically, and all you need is a device with internet access. Let us worry about the logistics.
If you have a property to inspect, but you are unable to, get in touch with us. We have a property inspection service that provides buyers like you with an unbiased site inspection report.
Ready to make full use of the opportunity? Have a chat with us.