Lockdown 2.0: what effects could it have on the property market?
Lockdown 2.0 and Its Effects on Property Market
We find ourselves a week back into isolation again. We hope you and your loved ones are staying safe and well during these difficult times.
Like Lockdown 1.0, the market is likely to see a slowing of new properties becoming available online, at least for a couple of weeks. We will probably also see the media’s sensationalising headlines again about how the property market is all doom and gloom and how much it is going to crash.
What we do know is that it didn’t after the first lockdown and it is quite possible that it may not this time either.
Perhaps in 6-12 months we may see a softening: when JobKeeper is no longer supporting wages, some businesses have unfortunately closed and banks have decided to call in some of their loans.
For the moment though, that’s all hypothetical – no one really knows what will happen.
What we do know is that people/families/large numbers are spending more time in their homes now –both living and working in them and they want the spaces to work efficiently. And, on average, most people live in seven houses during their lifetime.
Certain homes are in high demand and very low in supply: the family homes (all done) and single storey downsizers. If they come up for sale, they are rarely around for long.
For now, the lockdown time could be useful to work on a plan for the future. Consider what works both in your existing home and surrounding community and what doesn’t work and what you would like to change. If the location is already right, maybe you just need to change the property itself.
Being prepared is the most important thing. Have your finance sorted and a plan in place. If you already own a home, it’s either sell your property first with a good rental strategy in case the right home isn’t around before your settlement, or budget conservatively and buy first, having your home already prepared for sale to minimise any exposure to changes in the market place.
An Architect’s View
Some of the better properties currently for sale:
85 Victoria Road Hawthorn East – Mark Beardsley/George Bushby, Jellis Craig
3 John Street Malvern East – Hugh & James Tomlinson, Marshall White
- Large family Californian Bungalow on good land, Camberwell – circa $2.7m
- Renovated Hawthorne brick, 3-2-1, Hawthorn – circa $2.3m
- Land w. home seeking renovation or rebuild stca (no HO), Elwood – circa early $2m
- Renovated brick Edwardian terrace, 2-1-0, South Yarra – circa $1.5m
- Federation family home in prime street, Elsternwick – circa early $2m
- Large modern family home on large land, Black Rock – circa $3.2m
- Classy renovation, Victorian single fronter, 3-2.5,1, South Yarra – circa $2.2m
- Edwardian family home, close to amenities, north rear, Kew – circa $4m
- Renovated double fronted Victorian, north rear, Hawthorn East – circa $3m
- Renovated Victorian single fronter, 2-1-1, Windsor – circa $1.25m
- Modern family home with pool, Malvern East – circa $5m
- Californian Bungalow on good land, Camberwell – circa $3.3m
- Semi-attached Edwardian, close to amenities, Brighton – circa early $2m
- Renovated single level family home, close to schools, Brighton East – circa $2.25m
- Modern large family home over three levels, Glen Iris – circa $3.6m
- Near new Hamptons style single level family home, Highett – circa $1.95m