The stringent government response to COVID-19 has undoubtedly placed the property market cycle at the cusp of another downswing. So far, property value declines have been fairly mild. Nationally, the May home value index results show that the dwelling market declined just 0.4% over the month, and preliminary indicators for June are showing the rate of decline has gathered some momentum through the month.
n emerging narrative around regional dwelling markets is that they may see increased demand as a result of COVID-19.
This is thought to be driven by the way the pandemic has forcibly introduced remote work for knowledge-based or clerical workers. As employers and employees adapt to remote working conditions, physical proximity to a workplace may become a less important factor in home purchases.
The coronavirus crisis has ground Australia’s economy into a standstill, stifling property prices along the way – except for some particular regions that are, against all odds, doing better because of the pandemic.
According to hotspotting.com.au founder and Ryder Property managing director Terry Ryder, there are multiple influencing factors behind why a property market might perform strongly – and some property markets have three or more of these tailwinds behind them.