INCHING TO NORMALITY

Will hesitant buyers finally decide the time is right to make a move?

QUEENSLANDERS are rejoicing with the first relaxation of social distancing measures. Hopefully, this measure by the State Government is a step towards regaining some early sense of normality in our day-to-day lives.

As confirmed cases of COVID-19 begin to decline and a sense of regularity begins to return to society, a big question remains among buyers and sellers: what implications will this have on the Cairns property market?

While property has been allowed to transact throughout this time with by-appointment private inspections and virtual auctions still permitted, local agents have suggested some buyers have been hesitant to make a move in the current climate. Understandably, many potential buyers are worried over financial implications such as job security, while others are simply confused whether or not they’re allowed to go for a drive to view a home.

However, a relaxation on non-essential shopping and travel within 50km of home should inject some confidence to buyers and highlight that yes, they can still go and look at homes albeit still by private appointment only.

Combined with JobKeeper rolling out in practice, this should see more buyers return to the market, though this is still likely to be subdued compared with a more traditional final quarter of the financial year.

In many segments of the market, there are still opportunities to sell. Outside of those in casual employment or industries heavily affected by COVID-19, first home buyers should still be active, with the rent-versus-buy equation leaning heavily towards the latter. As interest rates have continued to fall, the number of properties that can be purchased and paid off (principal and interest) for less than what you would pay in rent for an equivalent home has grown, putting more choice on the table.

As the sharemarket continues a volatile run and Cairns maintains strong rental yields, investors with access to cash should also become more active. The saying “safe as houses” comes to mind for many, who will opt for the relative safety of bricks and mortar and a long-term tenant over other investment options. With open homes and in-person auctions still off the cards, owners will need to be more diligent with the presentation of their home as multiple weekly private inspections are likely to become the new norm; but it will be a worthwhile chore in exchange for market activity and a potential sale.