Developers are seeing healthy off-the-plan buyer activity and sales enquiries, as COVID-19 cripples some sectors.
Director of Castran Gilbert, Michael Lang, explains the situation has an end point that is unlikely to be more than 18 months away.
He says off-the-plan buyers are thinking beyond that point, because that’s when many developments will be complete.
“People need to take a deep breath, especially in our sector where we’re seeing strong enquiries still coming.
“We’d love people to buy their real estate like they’re buying their toilet paper, but in the interim some projects in particular are doing exceptionally well,” says Lang.
Lang highlights strong sales results at Park Avenue in South Melbourne, which has already recorded 51 leads and 13 sales this month. Meantime, Lt Hardiman Lofts at Kensington received 63 leads and five sales.
Core fundamentals such as good location and design stand strong, according to Lang.
“They sort of become recession-proof, to a certain degree.”
Shelter from the storm
Lang says volatility in the share market and other asset sectors is a reminder about the benefits of property as an asset class.
“Every time we have a correction in the share market, people head to the bricks and mortar and the comforts of a longer-term investment like property – it’s seen as a safe haven,” he says.
Underlying demand, buoyed by a population boom and the lowest interest rates in history, are giving buyers confidence of a significant rebound in property prices, according to Lang.
He adds, a price correction could end up being a boon for people who may have been priced out of the market.
“If you walk around to anyone in the street and ask them would you buy a property tomorrow if you could afford it, nine out of 10 people would say ‘yes’.
Excerpt from the article published on realestate.com.au.