COVID Property Recovery

Auction results across Sydney and Melbourne have remained resilient in lockdown, particularly circuit-breaker lockdowns, a report from CoreLogic advised.

It noted a larger than normal number of auctions are typically withdrawn, postponed or sold prior to the auction event.&nbsp;

And that transaction activity had slowed markedly through lockdown periods.

&quot;However a &lsquo;catch up&rsquo; in home purchases has been evident as restrictions ease,&quot; CoreLogic head of research for Australia, Eliza Owen, noted.

&ldquo;It is true that demand takes a hit during lockdowns&rdquo; she said.&nbsp;

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More importantly property values had &quot;remained resilient through lockdown.&quot;

Owen added stability of housing market values was likely subject to extensive government stimulus and institutional support for the sector.

Owen added these influences were &quot;far less certain going forward.&quot;

Australian housing market values had a peak to trough decline of just -2.1% through 2020, before surging 12.2% through the first six months of 2021.&nbsp;

Owen concluded by noting in the event of another extended lockdown, the future of housing demand and supply becomes much less certain if that same government and institutional support is not there.

CoreLogic head of research for Australia, Eliza Owen, noted demand takes a hit during lockdowns

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Latest lockdown could impact real estate resilance: RP Data's Eliza Owen

<html><body>The property sector was now emerging from the COVID-19 crisis with cautious optimism, according to the latest annual Avdiev Property Industry Remuneration Report.

"Almost without exception, survey participants reported their businesses are doing moderately to very well," Debra Moloney, principal of remuneration consultants Avdiev Report noted.

“2020 was a terrible year that will be forever etched in our minds as the year of COVID-19. 

"It appears that the worst is behind us. 

"Government stimulus packages, which have helped consumer spending, are also helping buoy the property and construction sectors.”

The Avdiev Property Industry Remuneration Report is a formal, Australia-wide survey of property, investment, construction employers and design and construction related consulting companies. 

It was the report’s 35th edition.
The results show property businesses went to great lengths to keep staff on, and teams leaned on each other for support. 

“Cost management strategies early on in COVID-19 ensured we were able to keep the majority of employees.” 

The survey revealed that working from home is here to stay. 

"Lockdowns, cancelled projects, the lack of face-to-face time, uncertainty, job losses, stress, change, pay freezes - and COVID-19 - were given as the main negatives in a difficult year," she noted.

"Not surprisingly, pay increases were minimal in 2020. 

"Nearly half of businesses (43%) imposed a pay freeze in their latest round of remuneration reviews.

"But businesses were more optimistic looking forward to their next remuneration review, with 71% planning on increasing remuneration during 2021."

Around half of the businesses advised they have taken on new staff in the last six months due to new business, however 21% reported headcount was lower than this time last year.

“The property sector, with its ability to adapt, has proven it is able to withstand even the most challenging conditions. 

"The outlook for remuneration is positive and indicates that the sector‘s recovery is well underway,” commented Debra Moloney.
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The property sector's remuneration is positive and indicates that the sector‘s recovery is well underway.


COVID Property Recovery

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