Covid-19 has changed the way of doing business
Real Estate
Like all sectors, the property market has had to overcome many challenges as the pandemic continues to rage through our communities.
And to gauge how the market is faring in these trying times, Newsport spoke to a number of Port Douglas realtors.
The following agents were approached:
Mark Flinn, Principal, Ray White, Port Douglas
David Cotton, Director and Licensee, Raine&Horne, Port Douglas
Alan Crossman, Principal & Licensee, Property Shop Port Douglas & Mossman
Michael Samson, Managing Director/Licensee, LJ Hooker, Port Douglas
a) Is the pandemic having an affect or none at all?
Flinn: Yes, the pandemic is still having an affect as people's mindsets are still towards lifestyle and holidaying in Australian and we tick both boxes. It doesn't seem like this is going to change for some time at the moment.
Cotton: Once the borders were open we were expecting a rush on southern purchasers that weren’t willing to buy sight unseen. There is still a lot arriving but nowhere near the numbers that we were expecting. Now that the virus is rampant throughout the area we are seeing the effects by the way of cancellations and staff being unavailable to work, which is making it all a bit of a juggle.
Crossman: Busy up until the Xmas break and steady through it. Covid-19 affecting staffing now but not drastically as compared to other industries, like hospitality. I expect it to be business as usual as far as the next couple of months are concerned. Covid-19 has not stopped the demand for real estate thus far ... in fact it has improved it.
Samson: The coronavirus has certainly had an effect on the way we do business over the past few years. We have had to be flexible at all times and keep in front of the new rules and guidelines. Using social distancing, QR codes, sanitising and masks are all part of our daily business in real estate
b) Where are we in terms of supply and demand?
Flinn: Things are getting very dire for buyers at the moment, as stock levels on the actual market are the lowest that I have ever seen in my 20 years in real estate. At the moment there are only 202 properties listed on Real Estate (dot) com in the Douglas Shire. To give you an idea, only 18 months ago there were over 650 listings in the area. We've seen the same on the Newsport Property listings. Land is also very scarce as most of the subdivisions that have gone ahead and are completed, are basically sold out. Even land at Wonga Beach that had been sitting on the market for a number of years is all sold out now as well.
Cotton: Holiday investments are still readily available with numbers decreasing in both buyers and sellers. In regard to permanent purchasers there is definitely a lack of supply starting to show.
Crossman: Tight.
Samson: Prior to Christmas I felt that our market levelled out to an even supply between buyers and sellers, however, with the New Year and Christmas now behind us there seems to be increasing buyer demand again.
c) Has anything changed in the rental market: more/less available?
Flinn: This is also very dire at the moment with very few rental properties available. This is making it hard for tenants to find a good rental property.
Cotton: The rental market is still very strong. There is still a lot of people looking for rentals and still with very little stock.
Crossman: Around 40 properties for rent in the Port Douglas/Mossman area. Supply has exceeded demand for the last couple of months.
Samson: Rental properties are also much more stable than say 6-9 months ago where nothing was available. There are still many people looking to rent quality properties.
d) Are we still seeing sales conducted 'sight unseen'?
Flinn: This seems to have changed since borders have opened as buyers can now hop on a plane and be here the next day. To be honest, though I don’t think that this has changed the market that much, as it was strong before borders opened up and is still strong now. As buyers have now become used to getting live video viewings, they are certainly still requesting them initially before booking flights and viewing it and then making the decision to jump on a plane or not.
I think in the current market if you are considering selling then you really need to ensure that you do your homework in selecting the right agent for you. In an active market, if you market your property correctly and pick the right agent then this can contribute to a significant difference in what you receive for your property, sometimes this can be as high as $100,000 difference between a good agent and an average agent. I suggest you look into who the leading auction agents are and see what results are being achieved via the competitive bidding auction process at the moment.
Cotton: Yes, but nowhere near the amount when the pandemic first started.
Crossman: Yes, was always present, but more so in the current situation.
Samson: Yes. Virtual Inspections are very popular with interstate buyers and they are happy to be making their property decisions from the Virtual Tours. The tours do give buyers a greater clarity than just the still photos of what is on offer at each property.
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