How well is the property and development industry coping with COVID-19?

There’s no denying that the property and development industry has felt the immense shockwaves brought on by the COVID-19 pandemic and the subsequent quarantine, self-isolation and social distancing measures. 

Property and development is an inherently social and interactive industry, and forward thinking and adaptive industry leaders are taking steps to ensure it can emerge from this crisis stronger than ever. 

What measures are industry leaders taking?

The Master Builders Association, the Urban Development Institute of Australia and key unions such as the CFMEU have been proactive in keeping the sector up to date with the latest government regulations, and translating them into what they mean for property and development. 

The Master Builders Association put out a statement this week, ensuring that stakeholders in the property and development sector are kept up to date.

“The team at Master Builders Victoria will continue to provide information as and when it becomes available. Click this link for further information regarding the guidelines, collaborative process and industry unity.”

“We know that building and construction sites are very complex – and it’s a huge adjustment. Please continue your great work managing the potential threat of COVID-19 on sites. We also appreciate that there are still matters which require attention. Rest assured, these will continue to be worked through and, where possible, updated in the next version of the guidelines.”

How is the industry adapting under social distancing?

Auctions have arguably taken the hardest hit so far, with the ban eliminating this popular and successful mode of sale – particularly in capital cities. The option to move to virtual, online auctions exists, and agents are considering the best course of action to take to bolster the drop in sales at auction. 

The off-the-plan and development industry is agile and forward-thinking, having developed virtual inspections and offered appointment-only display suite viewings for many years. Off-the-plan has always provided buyers with a less-stressful, auction free alternative to secure high-quality real estate in sought-after areas, meaning this restriction will not affect off-the-plan. 

For these reasons, the off-the-plan industry is the advantageous position to seamlessly continue offering these services to prospective buyers. 

The stimulus measures and recent interest rate cuts are making it a very affordable time to buy and build. The projected strong recovery of the industry when life inevitably returns to normal will be bolstered by easier access to finance, which is particularly good news for the residential sector. 

Off-shore investment will be down, lowering competition for local buyers. Improved lending conditions may instill further confidence in those looking to purchase an off-the-plan property over the next few months.

What does this mean for off-the-plan?

Virtual inspections and appointment-only inspections are relatively common for off-the-plan, click here to find off-the-plan apartments you can virtually inspect. 

Off-the-plan offers buyers the unique opportunity to put down a fraction of the final cost of their home initially, often with no additional money required for many months. This is a great way for buyers to secure a home now, and not have any financial obligations until the COVID-19 pandemic has passed. 
 

For more updates and market insights, click here.