How COVID-19 Has Changed The Real Estate Market

With all of the uncertainty that COVID-19 has brought into our lives over the last two years, we’ve all had to adjust to a new normal.

Work-life balances have shifted, carrying and wearing a mask is now commonplace, and we’ve all spent a considerable amount of time in the comfort of our own homes.

Perhaps, more than any other aspect of life, COVID-19 has had a drastic impact on the real estate market. With many now recognising the advantages of working remotely, the housing market has seen some major shifts in the last 24 months that were both unexpected and new.

Take a look at a few of the changes COVID-19 has had on the evolving real estate market.

Australians Are Prioritising Quality of Life More Than Ever

With much of Australia having been thrown into lockdown after lockdown, and many people finding new freedom in working remotely, priorities have altered drastically. Many people are no longer content spending hours of their days travelling to and from work or being confined to an office cubicle.

The COVID-19 pandemic has contributed to more people giving serious consideration to their work-life balance, quality of life, how they’re spending their time off and where they want to be based.

These factors have impacted the real estate market over the last 12 months. People from all around Australia have decided to put their happiness first, with many making the move away from densely populated urban centres such as Melbourne and Sydney.

Smaller cities, rural areas and regional coastal locations especially have seen a huge influx of Australians looking for a better lifestyle… somewhere they can raise their families and enjoy what they have worked so hard for.

High Demand for Property in QLD

Queensland is one such state that has seen a huge influx of incoming traffic. Queensland and the Gold Coast, in particular, have long been known as the place to be for anyone who wants just the right mix of work and lifestyle.

Queensland is seeing a surging population as many families move to the Sunshine State looking for a more relaxed lifestyle. With some of the best beaches that Australia has to offer on your doorstep and a summer season that just doesn’t seem to end, not to mention theme parks, natural reserves and tropical islands along the coast, it’s no surprise that the property market is booming.

Homes all around Queensland have become hot property. Low mortgage interest rates and a better quality of life have led to interstate buyers snapping up houses all around the state.

With auction clearance rates consistently reaching around 70%, it’s been suggested that Brisbane could soon be the strongest performing property market over the next few years.

Prices Have Skyrocketed

As the demand for property in Queensland continues, Brisbane property values have seen almost a 27% increase in the last year alone and it doesn’t look to be peaking any time soon. While this is fantastic news for anyone selling their home at a great profit, it has led to many Australians paying a lot more than they would have in the recent past.

As Queensland sees its largest population boom in 16 years, its previously reasonable property market has skyrocketed as buyer demand exceeds supply.

This high demand for homes in Queensland has resulted in property inspections and auctions seeing dozens of people attending with many hopefuls, such as first home buyers, often being locked out of the market due to the increased demand.

People Are Buying Properties Online

This increased demand can be seen not just in Queensland, but all throughout Australia, particularly in now booming coastal and rural areas as people search for a new lifestyle.

One surprising but not completely unexpected result of the COVID-19 pandemic is the impact it’s had upon people’s buying habits. Partially due to the continuous lockdowns as well as the increased demand for properties, people have been much more willing to buy a home without viewing the property first.

In the recent past, buying a home sight unseen was something that was only done if you were unable to get to the property in person due to extenuating circumstances, such as being out of state or even out of the country. Now buying property online without physically inspecting the property is considered completely normal.

The advent of COVID-19 may have caught some property agencies unprepared, however, for many like Percival Property, their early adoption of technologies like 3D virtual tours and use of marketing channels to capture targeted digital audiences simply meant it was business as usual.

In such a fierce market, where homes are getting snapped up sometimes within hours or days of going on the market, people are resorting to any means they can to secure a home. With pre-approval sorted, settlements are being finalised in record time.

COVID-19 has undoubtedly changed the way that the real estate market functions, with many real estate agents saying that the current market is unprecedented. As Australians adjust to the new normal that is life after COVID-19, many have decided that lifestyle is just as important.

With the focus shifting to creating the lifestyles we have all dreamed of having, it’s no surprise that the real estate market has felt the full impact of this change in priorities. With the property market booming and many Australians moving away from large urban centres in search of a better life, it’s exciting to see what the future holds.

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If you need assistance buying or selling property through the COVID-19 pandemic and beyond, we can help.

Get in touch with our team today and have a chat with one of our experts.


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