No coronavirus price drop for househunters
It's "business as usual" for real estate agents across Greater Brisbane this weekend with 50 homes set to go under the hammer despite coronavirus-linked cancellations affecting other industries.
Listings on realestate.com.au show 50 Brisbane properties were set to be auctioned Saturday, with Real Estate Institute of Australia CEO Antonia Mercorella predicting a potential drop in investor numbers but not a drop in prices.
"In the medium-term it's possible we could see a retreat in investors which may further dampen the volume of transactions," she said.
"It's unlikely to affect the median house price materially, given Queensland is a strong investment market, has a strong history of economic performance, significant infrastructure projects and steady projected population growth."
This as auctioneers reported no cancellations linked to coronavirus concerns so far.
"We've seen no evidence whatsoever of any buyer at this stage not willing to attend an auction because of coronavirus," a senior auctioneer confirmed to The Courier-Mail.
"I think there's some optimistic buyers that would like to see this impact prices but it's not, there are a lot more positive forces at work in Brisbane market than any effect coronavirus could have in the short to medium term and the general consensus is buyers are looking well past any fallout."
Ms Mercorella said confidence was key to the real estate market.
"If confidence erodes, it may lead to sellers opting to delay the sale of their property and the number of days properties are on the market extending."
She warned that while it was "business as usual at this time, it's clear the coronavirus is already affecting other parts of our economy - in particular, tourism".
"This may have some possible medium-term effects on holiday lettings where short-term rentals target long-term tenancies in order to continue producing income," Ms Mercorella said.
"Obviously any increase in available stock on the rental market would mean higher vacancy rates and affected rent levels."
Originally published as No coronavirus price drop for househunters