Over just a few months, Covid-19 has disrupted almost every corner of the globe. In the residential market, this has led to transaction numbers drawing to a standstill in many countries as lockdown measures prevent sales.
Savills Research has carried out a sentiment survey of Savills global residential network to assess how Covid-19 is changing the residential property market. Across all respondents, 47% anticipate vendors keeping their properties on the market at current prices, though 48% anticipate some level of price reductions.
The Savills Residential Global Market Sentiment Survey provides an overview of how market conditions have changed since the start of the pandemic based on our survey of 50 experts across the Savills global residential network.
Global key findings:
- 90% of respondents stated that 30% or fewer of their buyers have stopped looking
- Only 6% of vendors have or are considering removing their property from the market
- 30% of markets reporting legal changes to better facilitate business
- Buyers likely to prioritise home offices, Wi-Fi, and green spaces in future properties
Australian Snapshot:
In Australia, Paul Craig, CEO of Savills Australia & New Zealand said it is predicted that a shortage of supply will continue for some time, due to the uncertainty in the market, however this weekend marks an easement in home open restrictions which is a step in the right direction.
“If you are a qualified buyer, this is a great time to be on the lookout for a residential property, due to record low interest rates and attractive pricing.
“Given the encouraging progress with limiting COVID-19 in our country, why wouldn’t you want to own a piece of Australia!” he continued.
According to Chris Orr, Director of Residential at Savills Australia, “A recent suburb record was set during the shutdown period in Surry Hills, Sydney, where the undisclosed sale price has been reported to have surpassed the previous record by circa $4 million.
“Time will tell however, but the common belief amongst the industry is that we will see residential values rebound very strongly due to the lower volatility compared to other markets, lower borrowing costs for housing and the Government’s comments around the importance of both construction employment and the housing market” he said.
Mr Orr said his team are seeing buyers looking to upsize while it is cheaper to do so as well as luxury assets with unique/timeless appeal and off-the-plan inquiry is increasing (with delayed settlements)
Mr Orr believes that the rest of this year and into early next will see a rise in distressed sales (to what extent is unknown) however these will come to market in a staggered approach and likely not until the deferred payments offered by banks come due.
“It will be interesting to see what the increase in supply will look like and the effect it has on pricing, however, I’d expect to see an upward trending run on the market” he said.