Australian real estate has demonstrated its resilience with a 1.1% gain in March, according to the latest data from CoreLogic.
“The COVID-19 crisis shows that when the economic chips are down, Australians stick with bricks and mortar,” said Angus Raine, Executive Chairman, Raine & Horne.
Mr Raine congratulated the Federal Government on its move to provide JobKeeper payments through the Australian Taxation Office.
“These payments will enable businesses to retain staff, while the subsidy is also available to sole operators who have lost more than 30% of their incomes compared to this time 12 months ago,” he said.
“The JobKeeper support subsidies should also take some pressure off tenants and keep them in their rented properties, much to the relief of landlords across Australia.
“This assistance along with the Cash Flow Boost payment for employer’s worth up to $100,000 and bank mortgage payment holidays will serve to keep property values close to current levels as we navigate through this crisis.”
Mr Raine continued, “It is also important that buyers and investors ignore the doomsayers about real estate. We see this every cycle. Buyers don’t disappear, and those who are looking currently are qualified and motivated.”
In Western Sydney Peter Diamantidis, Sales Manager, Raine & Horne St Marys, agreed the JobKeeper payments are a great idea as it will keep people employed. “We are still listing properties for sale,” Mr Diamantidis said.
“Many buyers are first-timers who are recognising that with interest rates at historical lows, it is cheaper to borrow funds to buy a property in St Marys and surrounding suburbs than pay rent,” Mr Diamantidis commented.
“We are of course adhering to the Federal and state government restrictions on open homes and are using private inspections to show properties.”
In Adelaide, Con Pappas, Director & Principal/Auctioneer at Raine & Horne Unley said the JobKeeper payments would be a significant help to the property market.
“We are still appraising, and listing properties and receiving buyer enquiries. With more people at home, it is giving them more time to reconsider their financial plans,” he said.
“Apart from private inspections, we are offering virtual tours as well as live streaming properties using Facetime, WeChat or WhatsApp.
“We are adapting how we show a property to our buyers.”