The Queensland real estate industry body, the REIQ, have been carefully monitoring not only the state property market in the wake of the COVID19 global pandemic, but also consumer sentiment across Queensland regarding consumer confidence in recovery and general outlook.
Whilst there is evidence property prices have dropped nationally by 2%; Queensland has fared somewhat better overall with a 0.3% drop, and the Sunshine Coast, very much a lifestyle-driven regional market, by only 0.2%. In fact, nationally, key regional lifestyle areas such as the Sunshine Coast, close to capital cities have performed resiliently amidst this crisis.
The REIQ reports that whilst investors have ‘held back’, first home buyers and owner-occupiers are driving consistent and relatively strong market activity in Queensland. This can be attributed to not only the low interest rate environment, but also (in particular for first home buyers) government incentives around buying and building.
One of the key protectors of ‘price’ has been the reduced amount of stock on the market, i.e. realestate.com.au reports that total stock available in August 2020 is down 20% compared to this time last year. Hence, less stock, more price protection – an oversupply of panicked sellers could lead to a severe softening of prices.
Chief Sales Officer of realestate.com.au, Kul Singh said that in August – there was a 48% increase of sales listing views year on year and an increase of 49% year on year of enquires: with an 53% increase on rental listing views. Positive signs indeed.
A survey of Queenslanders’ sentiment reveals, 1 in 3 believe that day-to-day life has started to return to normal, whilst another 1 in 3 think it will take 12 months + to happen. 1/4 of Queenslanders think that it will take a year for the market to return to normal; whilst 43% believe it is an opportune time to buy, as opposed to 28% thinking it is not. Well, there you go.
We will keep you updated.