Home buyers who have stable incomes and approved finances will be able to take advantage of the spring market amid the COVID-19 outbreak, a market report from the Real Estate Buyers Agents Association (REBAA) shows.
REBAA predicts that regional property markets will continue to perform strongly over the season, driven by the strong interest from investors who are now seeing potential in these areas.
Matt Knight, REBAA regional spokesperson, said leading up to the warmer months, demand for coastal locations is likely to rise as more people realise the benefits of living and working in "lifestyle" areas.
"Increased activity from first-home buyers seeking to leave the capital cities has also seen increased demand even for smaller homes in regional locations and those requiring renovations," he said.
REBAA's report also showed that sea- and tree-change locations in Queensland are likely to record increased demand.
In Canberra, upsizers are poised to dominate the spring market while Adelaide is likely to be a hotspot for local and interstate investors.
Tasmania is forecasted to see an increase in first-home buyers and owner-occupier upgraders who will be taking advantage of the low rates and government incentives.
Among all states, Victoria is projected to bear the brunt of the COVID-19 outbreak as some of its areas, particularly Melbourne, remain on a lockdown.
Still, REBAA anticipates that as soon as restrictions are lifted, buyers will have more options than during the pre-stage four lockdown.
"Buyer energy and frustration are palpable — a sure sign that transactions will commence as soon as the gate is opened. If you have the money and job security, and are keen to buy, now could be a great time," said Cate Bakos, president of REBAA.
In New South Wales, there is a potential for prices to shoot up due to the combination of the low-rate environment and pent-up buyer demand.
Ramon Mitchell, REBAA's NSW spokesperson, said the undersupply in the state has left many buyers anticipating the spring market "with bated breath." However, he said there are vendors who are maintaining a wait-and-see approach, holding off listing their properties for sale.
"This is particularly true of those vendors located outside Sydney and those holding B-grade investment assets where their fears of losing money may not be entirely unfounded as the market becomes more discerning," he said.
