2020 has come with its own specific set of challenges ranging from a change in routine moving to working from home to facing financial uncertainty. Employees have been stood down, some businesses have been forced to adopt different strategies or business models, or even permanently shut their doors.
Hand sanitiser and social distancing has become a way of life, and checking the daily news to check the number of new confirmed cases in each state has become almost second nature. COVID-19 has changed a lot of things in the way we go about our day to day life, but it appears that despite some dire predictions, the one thing that hasn’t changed a whole lot in 2020 has been the property market.
The June quarter Corelogic property report showed that Australia’s market only fell by 0.8%. This is thought to be attributable to the combination of low mortgage interest rates, lenders offering the option to defer home loan repayments, and a number of government stimulus efforts including JobKeeper, business grants, First Home Owners and Homebuilders grants.
While the second wave of COVID-19 in Australia with clusters and hotspots continuing has created a little more uncertainty, Queensland active cases to date are minimal compared to other states and regions. The areas where property value is most likely to be affected is Victoria, including Melbourne, as the tourism and hospitality industries take a hit.
For investors considering purchasing a property in the coming months, it would pay to keep an eye on trends in capital cities and adjust investment strategy accordingly. Sydney and Melbourne may possibly be higher risk investments currently, while Brisbane and the surrounding regions could be a lower risk choice, and you could secure a well priced entry level property in a good suburb with less competition from other buyers. There have been strong signals from investors from the southern states for purchasing in Queensland to set themselves up for advantageous post-pandemic returns. For owner occupiers or first home owners, choosing properties that minimise outgoings is a solid strategy.
Queensland has seen relative normality with open homes and auctions continuing to go ahead, and the announcement of JobKeeper continuing beyond September has helped calm some of the uncertainty around employment. There has been an influx of interest from interstate investors looking to purchase property at great prices as a result of the overall slowing of the market in Queensland, as well as residents looking to make the move. If you’re going to go into lockdown, wouldn’t you rather a a house on a decent block instead of a one bedroom CBD apartment?
If you are currently researching options for investing, you can view our current property listings in South East Queensland here, or read more about our options for First Home Owners here.
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