Invest
Property investors ‘well placed’ to withstand COVID-19 crisis
A real estate expert has said that most major property markets are resilient enough to survive the pandemic, noting those that do take a hit will rebound relatively quickly.
Property investors ‘well placed’ to withstand COVID-19 crisis
A real estate expert has said that most major property markets are resilient enough to survive the pandemic, noting those that do take a hit will rebound relatively quickly.

According to Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos, the many financial support programs available will help to prevent any significant property price falls over the medium term.
“Whenever there is a global financial shock, some commentators predict huge property price falls, which ultimately don’t happen,” Mr Koulizos said.
“During the GFC, prices were ‘forecast’ to fall by 30 per cent, but in many locations they held their ground and even strengthened over the months and years afterwards.
“While the coronavirus situation is somewhat different, given it’s a temporary public health emergency, I believe property prices may temporary soften by 5 to 10 per cent at most but rebound relatively quickly.”

Mr Koulizos noted that most property markets were experiencing strong conditions prior to the pandemic, which would help to insulate them over coming months.
“Compared to other economic downturns, existing low interest rates and inflation will also protect property markets,” he said.
“Unemployment will go up – there’s no doubt about that – which is a similarity with other economic downturns. But low interest rates will help property owners as well as business owners. Plus, there is the fact that you can defer your mortgage repayments for up to six months, which hasn’t happened before in my lifetime.”
That being said, Mr Koulizos acknowledged that rental markets are likely to experience tougher market conditions for a period of time.
“Again, rental markets were in good shape prior to the pandemic, but there has been a significant number of holiday-related listings coming on to the market over recent weeks, which is likely to continue for some time yet,” he said.
“So, rents will trend lower due to this extra supply, which will drag down median rents until those leases are finished and domestic tourism is reopened.”
Looking ahead
In terms of what the future holds for property investors, Mr Koulizos said the majority are in a good position to manage lower rents for a period of time “because of interest rates of between 2 and 3 per cent on many property loans”.
“It is far better for this to happen now with most sales and rental markets in healthy shape before the crisis began,” he said.
“Coupled with once in a lifetime interest rates, property owners are well placed to ride out any temporary downturn.
“Prices aren’t going to go up or down by 30 per cent. There may be a slight downturn in prices over the short term, but real estate is a long-term investment that has historically shown resilience time and time again.”

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more