Covid-19 pandemic driving significant industry changes: Savills
The disruption of the Covid-19 pandemic has led to real estate transaction numbers coming to a standstill across the globe, and had a significant impact on the industry, according to the latest study from Savills Research.
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.
Titled the Savills Residential Global Market Sentiment Survey, 50 experts from across the globe took part.
90% of respondents stated that 30% or fewer of their buyers had stopped actively looking.
Only 6% of vendors have or are considering removing their property from the market, according to the report.
30% of markets have reported legal changes to better facilitate business performance.
The survey also found that, on average, buyers felt that they were likely to priorities home offices, Wi-Fi, and green spaces in future properties.
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 last 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,” Mr Craig said.
“Given the encouraging progress with limiting COVID-19 in our country, why wouldn’t you want to own a piece of Australia!”
According to Chris Orr, Director of Residential at Savills Australia, prices have the potential to rebound strongly.
“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 concluded.
