Covid-19 and the Perth Property Market
The Covid-19 crisis has caused havoc and created a sense of uncertainty around the world, but what does it all mean for the Perth property market?
Experts around Australia have been offering their insights on this, explaining that Perth may be the best positioned state to handle the fallout from the current situation.
The Covid-19 Crisis Differs From A Financial Crisis
Unlike now, previous downturns in Australia have been predominantly financially led. This is a significant differentiating factor to the Covid-19 crisis and why compared to a financial crisis, the coronavirus pandemic is likely to be shorter lived.
With various measures in place such to stimulate the economy as well as handle things such as non-performing loans and mortgage payment deferrals, Australia’s financial system has been well-equipped to deal with the fallout from the current situation.
The financial support measures that have been implemented by the state and federal governments will help to stimulate the economy. House prices in some areas may fall slightly in the short term, however experts are not expecting them to crash like they would if it were the case that the banks were also distressed and not equipped to handle the economic downturn.
The general message from the real estate industry seems to be that people should not be afraid to buy and sell under the current conditions. Stock levels are low, demand is still there and people’s motivations have not changed whether it be in terms of wanting to upsize, downsize or move to a different location.
Perth Likely To Be Best Positioned State
According to an article by realestate.com.au earlier this month, one market that may be best positioned to deal with the current conditions is Perth.
This year, along with stimulus measures expected to be introduced by the Chinese government, iron ore is expected to be a beneficiary of the Covid-19 crisis rebound. Further to this, a drive towards safer investments is pushing the price of gold up and next year Australia is tipped to be the biggest producer of gold in the world. Iron ore and gold are Western Australia’s top two exports which is likely to see the state, and ultimately Perth, benefitting.
Australia’s Department of Industry, Science, Energy and Resources is anticipating that almost all Chinese workplaces will be fully back in action by mid-year. China is Western Australia’s largest trading partner, with half of the state's exports going there over the past 13 years. Western Australia exports more to China than all other states and territories combined.
All in all, this positions Western Australia well to deal with the Covid-19 crisis and could mean that property prices in Perth will go against what is happening in other states and territories.
Is Now A Good Time To Buy?
Speaking with The Daily Telegraph, REA Group Chief Economist Nerdia Conisbee offered her take on whether or not now is a good time to buy.
Nerida explains that that there are many variables that need to be taken into consideration when answering this question and that some markets are likely to be more impacted than others, including cities and suburbs that rely heavily on tourism and education. All in all, where you are considering buying is going to impact whether or not now is a good time to buy. Additionally, consideration should be given to an individual’s situation in terms of employment and potential loss of income at this time.
When asked about the property market outlook across Australia Nerdia offered a similar view as realestate.com.au when it came to Perth, explaining that Western Australia’s exports of iron ore and gold place the state in a strong position to ride out the turmoil caused by Covid-19.
Interest rates are at an all-time low and lenders across the country are in high competition with each other, offering innovative mortgage solutions to assist aspiring homebuyers.
It is easier than ever to secure finance to get into your own home and with the forecast for Perth property still looking positive, industry experts seem to share the view that buyers have confidence and time on their side.
Construction During Covid-19
The government has deemed the construction industry as an essential service and it is still business as (almost) usual here at First Home Buyers Direct and Simsai Construction Group.
Our processes have changed slightly in line with the current pandemic and we have implemented strict health and safety measures to protect our staff, suppliers, clients and the broader community. This includes:
Our clients are still able to:
- Practicing social distancing;
- A one trade per site policy;
- Increased cleaning and sanitation; and,
- The option for video conferencing in lieu of face to face meetings.
- Visit display homes by appointment;
- Visit our offices for contract signing;
- Visit our offices for pre start appointments; and,
- Attend scheduled site visits.
Own Your Home, Secure Your Future
If you have been thinking about making the move into home ownership, now is a great time to get in touch and explore your options. First Home Buyers Direct are one of Western Australia’s most reputable builders, we have been building homes in Perth for over a decade now. Contact us today to see how we can help.
Posted by First Home Buyers Direct on 22 April 2020 | 0 comments
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