Taking a look back at the last lockdown Sydney experienced, it is safe to say the property market was in a very different state.
Last year we saw a lull in market activity during lockdown, which produced some of the toughest market conditions we have experienced. A global pandemic, and a 7-week ban on open homes and auctions – all contributed to the difficult conditions of the property market.
Coming out of those lockdowns and looking at the first quarter of 2021, we can all agree that the property market was significantly different. Our Residential business experienced an increase in activity, with record low interest rates continuing, Government incentives extended and a significant media presence on the ‘heat’ within the market.
Media outlet realestate.com.au reported that “NSW real estate spending hit new heights in 2020 as COVID spurred a home buying frenzy”. Outlining that “The pandemic has driven a year of record spending in the housing market, with Sydneysiders splashing out more money on houses and units in 2020 than they did in the year before the coronavirus hit.”
Comparing Q1 2020 to Q1 2021, our Sydney business recorded an increase in buyer interactions and enquiries – with enquiries up 218% YoY, and buyer interactions almost doubling. We also saw increasing sales activity, and the duration between initial deposit to exchange reduce.
Since lockdown began a month ago, we have continued to see strong enquiry and consistent transaction. Buyer interactions and private appointments have slowed, however there has been an uptake in virtual appointments and buyers are happy to inspect virtually.
We are able to offer our clients digital solutions in order to continue assisting them through their property journey. Virtually we are able to walk you through a finished apartment or display suite, guided by one of our sales executives, all from the comfort of your own home.
Speaking with Colliers Director of Project Marketing, Daniel McMahon, he said “Since the lockdowns began, we have heard consistent feedback from buyers that they want to wait until lockdown ends to commit to a property - but my concern is that there will be a so-called bubble at the end of lockdown with the large number of buyers that are waiting for it to be over”.
The argument or burning question is – but why would anyone want to buy a property during lockdown? The answer - because you don’t want to miss out. Don’t buy when property prices are surging, buy now.
We can all agree that we saw the Sydney property market change dramatically coming out of the last lockdown and a lot purchasers playing ‘catch up’ in their home purchases.
Conditions for buying a property haven’t changed - we continue to experience some of the best conditions including record low interest rates and Government incentives.
At Colliers we don’t want our buyers to miss out and wait to see what happens with the potential of another Sydney property flurry post this lockdown – now is the time to buy.