How has the coronavirus impacted the Australian real estate market?

It’s no secret, Australia – we’ve faced some pretty rough times in just the first couple of months of 2020. The fires, our wildlife disaster, dust storms, floods and now the outbreak of a global pandemic – the dreaded Coronavirus.

You’re probably already as tired of hearing about it as I am.

Our government has already identified now over 251 confirmed cases of Coronavirus (COVID-19) here, including a few deaths, sadly. This number changes every single day.

But it’s not just our health that’s at stake; it’s also our stock and property markets.

It’s already creating a domino effect on investments and businesses. The fear of the Coronavirus triggered the ASX to decline over 7.33% or in dollar terms, $137 billion has been wiped from the stock market, with the Australian dollar trading as low as 61 US cents and dropping. The last few days have been the worst event for our stock market since the global financial crisis a couple of years ago.

People are pulling out their money from the real estate market, too.

I’ve been noticing that property sales are being derailed and a lot of buyers are starting to become reluctant to go to auctions and open inspections.

It’s something that baffles me, to be honest. Because unlike the stock market which has always been volatile, the property markets are far more resilient because, when it comes down to reality, bricks and mortar last a lot longer than something like the coronavirus.

Why is it still safe to invest in the property market, then?

It’s usual for the Australian share market to falter – it’s the very nature of that market. And when you throw in something as globally devastating as the coronavirus, it’s bound to have a big impact. However, property is a far more stable investment opportunity.

Why? Because as long as the population continues to grow, the need for houses and apartments will too. With this demand increasing over the long run, the value of property, along with the wealth of savvy real estate investors does too.

Besides, even without the Coronavirus, the condition of the Australia property market right now is already quite phenomenal!

Our current interest rates are at record lows, and the Reserve Bank of Australia (RBA) is considering cutting them further due to slowing economic growth, sluggish wage increases and the effects of recent natural disasters.

As the cost of borrowing lowers and mortgages become more affordable, there’s such a great opportunity now to buy the right property in the right location and build a portfolio.

The Coronavirus will pass. But people hold real estate for years.

It’s hard to predict how long it’s going to take for this coronavirus health crisis to come to an end, and the stock market will continue to fluctuate with its impact for quite a while after.

However, what I do know is that property investing is such a good option, especially now, if you want to invest in something you can rely upon. It’s less volatile and it’s a tangible object, making it a safer investment amidst such uncertain times like we have literally on our hands right now.

Just remember to surround yourself with experts and professional real estate advisors who can provide you with the knowledge you need to overcome difficult times like this.

For instance, here at Worth Property Investing, we help you succeed using only real facts, years of experience, due diligence and solid research to make the right decisions about what property to buy and where.

How can Worth Property Investing help you?

At Worth Property Investing, we partner with you throughout your investment journey.

Led by Simon Read, we are passionate about building a strategically sound and highly diversified property portfolio which can help you fulfil your dreams.

As your trusted licensed property Buyer’s Agents, our experienced team guides and supports your property investing education, so you can achieve your property goals sooner.

Worth Property Investing can help you find the right property to meet all your requirements when considering your next purchase. We have a proven track record to help you succeed!

Don’t put it off any longer – contact Worth Property Investing today and start achieving your property investing dreams!