Thursday, February 20, 2020

Coronavirus - is it good for real estate?

The world in recent times has not seen a pestilence quite like the coronavirus and with the interconnectivity of the world today, and the ease of international travel, the panic that has followed should not be too surprising.

Already, we are hearing of the impact that this has had on businesses who are re-assessing their economic exposure to China. Businesses, schools and universities involved in tourism, international education and consumer goods have used this situation to finally act on their suspicions too many of their eggs are in one basket.

The question is what impact this will have on real estate in Australia? Following the news, one can't help but think that it will help. Australia has a reputation around the world as almost an oasis, a far away country that you can escape to. The Chinese government's response to the virus has every effect of making their citizens wonder whether they are safe in the long term. While there are no flights out, one can imagine families in China contemplating a better life in another country.

Currently, the real estate market in Perth does seem to be turning a corner. There are first homebuyers that have been sitting on their cash and earning over the last few years, saving for the right time. Interest rates are as low as they could possibly go and the state of the world probably suggests people will stay in Perth. Even in this little corner of the internet, we have experienced an increase in web traffic as homebuyers start to do their research online such as finding out what are Perth's best and worst suburbs. Time will tell if this is a true recovery for the market.

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