MARKET CONDITIONS

THE AUSTRALIAN ONLINE PROPERTY SITE REVEALED A 6.8 PER CENT INCREASE IN SEARCHES FOR NEW HOMES COMPARED TO THE SAME PERIOD LAST YEAR, WITH MORE THAN 1.4 MILLION VISITING REALESTATE.COM.AU EACH DAY.

CHIEF ECONOMIST, NERIDA CONISBEE SAID THE PROPERTY MARKET WAS PROVING MORE ROBUST THAN EXPECTED HOWEVER THE EFFECTS OF THE PANDEMIC ARE COMPLICATED. “THERE SEEMS TO BE A LOT OF BLANKET STATEMENTS OUT THERE ABOUT WHAT’S HAPPENING IN THE PROPERTY MARKET AND HOW IT’S ALL BAD,” SHE SAYS IN THE REPORT. “BUT THE REALITY IS, WE’RE SEEING A LOT OF DIFFERENCE ACROSS AUSTRALIA IN TERMS OF HOW PROPERTY IS BEING VIEWED. SOME MARKETS SEEM TO BE FAR WORSE IMPACTED THAN OTHERS.”

SEARCH RESULTS FOR OFF-THE-PLAN HOMES DIPPED THROUGH THE LATTER HALF OF MARCH AS SOCIAL DISTANCING RESTRICTIONS WERE INTRODUCED, BUT EVEN ACCOUNTING FOR THE DROP IN ACTIVITY, THE RESULTS WERE A POSITIVE INDICATOR OF THE SECTOR’S RESILIENCE. CONISBEE SAYS THE REBOUND IN WEEKLY SEARCH ACTIVITY IS IN LINE WITH BROADER CONSUMER SENTIMENT DATA. “ANZ RELEASED THEIR CONSUMER SENTIMENT AND THAT PICKED UP AS WELL LAST WEEK,” SHE SAYS. “THAT THIRD LEVEL ANNOUNCED BY THE GOVERNMENT LAST WEEK SEEMS TO HAVE MADE PEOPLE FEEL MORE CONFIDENT.”

THE REPORT SUGGESTED THE USE OF DIGITAL TOOLS WAS A KEY FACTOR IN OFF-THE-PLAN PROJECTS CONTINUING TO APPEAL TO BUYERS.