Every industry around Australia and the world has been impacted by the COVID-19 pandemic – and the real estate industry is no exception. If you’ve been considering a career as a real estate agent, here’s some insight into how the industry is performing and transforming in this new environment.
Australia’s Strong Property Market
Australia has had a strong property market for many years, with the residential sectors in Melbourne and Sydney reaching new peaks in March this year. And then COVID-19 arrived! With lockdown restrictions in place, property transactions halved – an understandable result. But there’s no need to feel concerned or pessimistic about his industry quite yet.
While the COVID-19 pandemic has resulted in predictions from the International Monetary Fund that the Australian economy will shrink as much as 6.7% in 2020, it’s also predicted to surge back by 6.1% in 2021. This is largely due to forecasts that demand for Australian housing still exist and that the state and federal government’s measures to support the economy (the biggest fiscal response in the whole of the G20, characterised by direct fiscal support rather than costly loans) will be effective. Other positive economic factors include China’s ramping up of economic activity which, as our biggest trading partner, should support a quick economic recovery and limited damage.
Since the real estate market is a long-term rather than short-term investment market, we can expect to see negative changes over the short-term that level out over the following years – assuming that this pandemic can be successfully contained and managed – which is the case in much of Australia.
A Short-Term Outlook
As we’ve already seen in 2020, the real estate industry will be negatively affected in the short-term. Not only are sellers and buyers putting their plans on hold due to a combination of restrictions, wanting to see the pandemic through safely, and managing possible loss of income or financial security, real estate agencies are also in the process of adapting to a new normal of remote working, virtual home tours and digital solutions.
Because this economic crisis is driven by lockdown restrictions rather than economic excess and speculation (such as in 2008), the recession is likely going to be shorter and more limited in terms of its impact on housing prices, creating smaller dips that offer buyers who would otherwise not be in the market tempting and accessible opportunities to invest before prices recover.
As most of Australia has seen a lot of success in flattening the curve quickly and containing the virus, experts predict a rebound close to the end of the year where latent demand will surge and the market should return to a new and different normal. It’s all about how quickly real estate agents adapt, whether the virus resurges or not, and the pace of overall economic recovery driven by the federal government’s fiscal response and the global recovery of key trading partners.
Now is the Perfect Time to Get Your Real Estate License
While the industry is changing and Australia is in a slight economic lull, it’s the perfect time to get your real estate career going! Not only will you be trained in the most up-to-date and effective solutions for selling real estate in the new normal, you will be positioned to hit the ground running as soon as the market starts to rebound and open up with new, exciting opportunities as people get their lives and dreams back on track.
Global Real Estate Training offers affordable, high-impact online training courses that help you improve your real estate career anywhere in Australia and equip you with the expertise, professional network and skills you need to succeed in this competitive environment. In addition to real estate sales, we also offer courses in property management and administration, transforming you into the well-rounded, highly-skilled asset that every real estate agency is waiting for. Learn online through COVID-19 and get ready to take on your dream career as a real estate agent – the Australian real estate market is positioned for your success.