This month property market analysts have begun to return some solid data around the ramifications of COVID-19. CoreLogic and ANZ released their third joint Housing Affordability report. This one was for the June quarter, 2020. In the preface to this special COVID-19 edition, Richard Yetsanga and Felicity Emmett from ANZ note that “fluctuations in the rental market will directly influence investor demand over the next few years and flow through to both prices and construction, and in turn measures of housing affordability.”
The report goes on to highlight some of the ways COVID-19 has accentuated areas of concern in the diverse demographics that make up the Australian rental market, including:
- an examination of factors affecting rental as a direct result of COVID-19
- the state of rental supply prior to and during COVID-19
- the rate of investor participation up to and during the pandemic
- a number of rental market metrics including yield rates
In regards to investor participation, Domain notes that overseas searches for Australian property have dropped in recent months with an overall reduction in searches of 5.1%. Though this seems a relatively modest figure all things considered, breaking it down further shows ‘for sale’ searches from China have fallen by a significant 27%, Singapore by 16%, and the USA by 10.5%. Apart from COVID itself, this is attributed to the reduction in available air travel, and border closures as a result of the pandemic.
It’s not all in the negative, however, as searches from Hong Kong (14.1%) the UK (6.7%) and India (4.3%) all rose.