How covid-19 Has Shaped Property Buying
One year and some months down the line, the impact of Covid-19 is rolling in. Let us take a look at the current state of the property market.
The property market has always been complex even before the covid-19 pandemic kicked in. Having potential buyers who are all knowledgable about the real estate market is way too imperfect. With the pandemic and reduced physical distance, hosting things like home exhibitions and open days, which has always helped the consumers know more about the property market is becoming more difficult. This has made the sellers know more about the product they are selling to the consumers that are the property, than the buyers who are the potential homeowners making the property market to become imperfect.
Consumers' confidence is also another factor that has been affected greatly since the pandemic and this is evident in their savings and consumption. The degree of optimism of these potential home buyers has gone down. Many people are now saving in the name of the future which is very unpredictable. Many new apartments are hosting ghosts since the confidence that the potential residents had before, to try a new living area or to let go of their current apartment and try a new one has gone down too.
Many investors are worried about where to place their investments, with many being caught in the dilemma of whether they should grow their wealth or simply preserve it. The pandemic has brought in a slow economic climate with the property market facing its own challenges just like any other business in the world right now.
With the current struggles and the ups and downs of life especially under the effects of covid -19 most of the office spaces and new apartments are expected to be rendered empty since everyone's main course is to survive and make it through tomorrow. Most tenants are being laid off, reduction in income is kicking in from top managers to mere employees. This has a fast effect on real estate just like other sectors are experiencing the same fate.
Reduction in the demand for houses has an effect on the prices and cost of housing. Occupancy rates and uptake are rapidly falling to flat a curve.
Longer development and the construction period are expected to owe to the disruption of supply as most of the construction materials are sourced from countries such as China. Shortage of building materials automatically will increase the duration for putting the new projects up and complete.
Reduction of labor and task force is also another effect of the pandemic that has cut across even in the real estate sector.
Edited by Skeeter Imisa