COVID-19 crisis hasn't put off homebuyers, amid possibility of 'bargains'

Leon Jacques of Cohen Handler believes the opportunity is there for buyers to claim a new home at a discounted price. The experienced buyers agent estimated he saved a client up to 10 per cent on a property he just purchased due to the uncertainty in the market due to COVID-19.

“The bulk of discounting will likely happen over the next two to three weeks,” he said.

“Around five to 10 per cent is not unreasonable.

What does COVID19 mean for the property market?

“Home buyers are still ready to go and they want to take advantage of the situation and sellers will already be committed. Investors are still on board too.

“I’m already seeing a bit of conflict for sellers, they want to get a good price, but they are fearful (of the pandemic).”

Mr Jacques said he had witnessed auctions being pulled even before Prime Minister Scott Morrison banned them from Wednesday.

However Mr Jacques had a simple message for vendors - buyers remain in the market for a new home. This is something the real estate industry should not lose sight of in these challenging times.

“Homebuyers are still out there and they will continue to buy at the right price,” he said.

Smart, patient buyers

Of course the COVID-19 pandemic is a fluid crisis and the situation will continue to change week to week.

Sebastian James from buyers agency Hunter James believes a significant number of property transactions will continue as Australia grapples with the greatest health crisis of our times.

“The smartest buyers are taking a patient approach, but they will not be afraid to take action when an opportunity arises,” he said.

“A proactive approach to identifying off market property will be more important than ever with so many vendors taking a risk-averse approach.

“Property is first and foremost a shelter and a primary necessity of life. Whatever happens over the coming weeks, months and years, property will always hold relative value as an asset class.

“There will be untold sacrifice but with this incredible opportunity for those who can best position themselves to navigate the challenges and take positive action.

“Most importantly we must all put people before profit.”

No one can possibly accurately predict the impact of the COVID-19 crisis on any industry - as we have seen so far. Leaning on lessons learnt from previous crises including SARS, MERS, 9/11 and the GFC is unlikely to illustrate the way forward - these are unchartered waters.

However despite the necessary restrictions imposed by government, the real estate market can continue to operate. Listings will inevitably be held back, stock levels will fall. Private inspections and online auctions will be the norm. But the market can continue to turn over.