The year 2020 will go down in memory for all the wrong reasons, with the COVID-19 pandemic causing chaos across the globe. However, considering the economic turmoil many countries have been put through, Australia and its property market have remained relatively unscathed.
Speaking at the Real Estate Institute of Australia’s (REIA) annual meeting, re-elected President Adrian Kelly reflected on the country’s real estate market performance during what was an extremely challenging year.
“As we reach the final stages of 2020, it’s clear that our industry and the property market generally has withheld the shocks that were previously forecast,” he said.
“The wild predictions of 30 per cent of our tenants becoming unemployed has proved to be unfounded, with our members reporting less than five per cent of tenants being affected in the larger capital cities, in particular Melbourne and Sydney, and less than one per cent in regional locations”Adrian Kelly – REIA
“In fact, we’re now seeing rental vacancy rates tightening across many markets,” Mr Kelly added.
The real estate boss said that property values have held high across Australia, with many regional areas seeing property prices increase, largely due to the fact that people are deciding to move away from the larger cities, a trend that was already occurring but was accelerated by the pandemic.
We were very concerned about what impact the forced lockdown in Victoria would have given that this is Australia’s second largest marke… if something happens in that state it would have flow on consequences for other parts of the countryAdrian Kelly
“Thankfully, that lockdown and the measures implemented managed to suppress the virus and the property market across that state is showing great resilience in most suburbs, though there remains some pockets that are slower to recover than others.”
Mr Kelly also praised the efforts of the real estate bodies across the states, and was in positive spirits when asked about his predictions for what 2021 will bring.
“The response from the REIs was a true testament to the power of teamwork of the state and territory REIs under the banner of REIA,” he said.
“2021 will be one to watch, with the tenant non-eviction periods coming to an end early in the year coinciding with the finalisation of mortgage pauses and no doubt these things will be centre stage in the New Year.”