Well, hasn’t that been an interesting month?!
Firstly, I hope that for anyone reading this, you and your family/friends are safe and sound.
I hate to use the word unprecedented (as it is bandied around a lot at the moment), but these are unprecedented times for our personal and professional lives.
Let’s look at the facts with our property markets:
- Lowest Interest Rates of our generation
- Growing population
- Dwelling commencements dropping
- Sharemarket shedding billions of dollars
Lowest Interest Rates of our generation
These are the lowest fixed and variable rates we have ever seen. With rental returns on properties averaging between 4% and 5%, this makes property/bricks and mortar an attractive proposition.
Growing population
As of June 2019, the population growth in Australia was 1.5%, just below the decade average of 1.6%
Dwelling commencements dropping
We haven’t been building enough properties to keep up with our growing population.
Sharemarket shedding billions of dollars
Due to the current circumstances, the sharemarket (and our superannuation funds) have lost a lot of their value.
Having conversations with others, one of the key comments appears to be “see you on the other side”!
So with that in mind, with the restrictions on public auctions, real estate transactions will slow down. This will most likely keep a good platform under the prices.
Transactions will still be made, in other ways, digitally or private sale/offers.
When we get to “the other side”, our shops and all of the places shut down will still be there.
They will need workers to reopen them!
We can already see that China is (as much as it can), getting back to normal, with (at the time of writing) no new daily community cases reported.
We also wait with bated breath, to see what support the federal government/national cabinet will give both landlords and tenants.
This is due to be announced today (Friday 27th of March), and we will communicate the details to our membership as it comes through.
Stay safe, and if you have any queries in regards to the effect on our property markets, please contact enquiries@propertyclub.com.au.
Property Club is at the forefront of the best properties in the best areas – make contact with your Property Mentor or hit enquiries@propertyclub.com.au for further information on the great options available for Club members!
Troy Gunasekera
National Manager