How Covid-19 has affected property markets around the world in 9 charts

Nicola Powell HeadshotThe COVID-19 pandemic has created havoc around the world.

It’s created tragic health issues, significant economic problems and even social unrest.

And of course it has had  varied impact on the real estate markets around the world.

New Domain research has revealed how the pandemic has affected real estate across the globe compared to Australia – whether it be a dramatic drop in new property listings or experiencing little to no change in activity.

Cities that had stringent lockdowns experienced a dramatic drop in new property listings, while those that adopted a more relaxed policies saw little change in real estate activity.

Domain Senior Research Analyst, Dr Nicola Powell examined how our property markets reacted across the globe as restrictions slowly eased and we we navigate a new-normal post-pandemic.

Her trot across the globe suggests hard lockdowns have a greater impact on new properties listed for sale, with a faster and strong recovery.

Australia

From late March through to early May, new listings dropped about 40-50 per cent a month across all capitals, with a more mild drop in Canberra

Once restrictions had eased, most cities had listings return to levels expected for the time of year, while Sydney, Melbourne and Perth pushed higher than last year.

Melbourne’s stage 4 restrictions had a dramatic impact on new listings, with new listings dropping 70 per cent on a monthly basis at its peak

Domain Senior Research Analyst, Dr Nicola Powell explains:

Melbourne has experienced the strongest recovery than any other Australian city post-lockdown.

The number of properties listed for sale in the week ending October 4 jumped by 241 per cent from the week prior – the highest number of new listings in a week since early March.

The volume of listings edged higher than the same week last year.

This recovery is stronger than any Australian city post-lockdown one in May.

Evidence from other cities across the globe suggests Melbourne will continue to experience a rebound in properties being listed for sale.

As the strict stage 4 lockdown stalled decisions from homeowners, the pent-up supply built will flow to market.

 

New Zealand

 

New Zealand’s approach to COVID-19 was fast, moving into a stage 4 lockdown swiftly.

Domain Senior Research Analyst, Dr Nicola Powell explains:

The impact on sales activity was immediate.

New Zealand serves as an excellent case study, because it is one of the few countries to return to near-normal following a strict two-month lockdown.

Once restrictions were lifted, the flow of market activity returned fairly rapidly for a period of time.

While new listings boomed to unseasonably strong levels for the time of year, demand matched, and prices have surged.

United Kingdom

Post-lockdown, market activity became unseasonably strong, with supply, demand and buyers with intent bouncing

Analysis suggests activity is also reflecting a changed wish list, with buyers seeking more space

 The UK Government’s abolition of stamp duty for the majority of residential transactions will have also helped to ignite the real estate sector.

United States

Domain Senior Research Analyst, Dr Nicola Powell explains:

COVID-19 hit the US real estate industry during early spring, a traditionally busy time of year.

Across major metropolitan centres, from the new listing trough, it took roughly 12 weeks to surpass last year’s volumes

Some of the steepest slowdowns in new listings were initially reported in Detroit and New York City. In Detroit, new listings remain below previous years, while New York bounced higher

Source: Domain Research –  Nine charts that show how Covid-19 has affected property markets around the world

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

Metropole

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In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


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