By Tim McKibbin, CEO REINSW – This article first appeared on Macquarie Port News
As COVID-19 restrictions are being relaxed, the property market is likely to be very different from pre-pandemic times.
Property market activity always captures the attention of the community, however, as the Government relaxes COVID-19 restrictions and we are entering unchartered waters, that will be more so.
However, what we do know with certainty is that the consumer’s requirements and the market response will be very different from when we entered the pandemic.
We have proven to ourselves that we can work remotely and do so very effectively.
This, in turn, will cause us all to reassess both our residential and commercial accommodation requirements going forward.
The supply of commercial rental stock is likely to increase as a consequence of the COVID-19 ‘work from home’ learnings.
Many companies are already reassessing their business accommodation requirements; and some are predicting that their office space requirements will decrease by as much as 40%.
With the potential of growing stock levels impacting rents, some commercial landlords are investigating the feasibility of repurposing their property to attract a different type of tenant or end-use, for example residential.
Residential accommodation requirements of the post-COVID-19 consumer will also be an interesting space to watch.
For many of us, we now know we can work effectively from home; that means our home does not necessarily need to be close to our work, as it was pre-pandemic.
Many people may now be tempted to relocate to outer or regional areas in search of more space and a different lifestyle, whilst maintaining their working arrangements.
This probable change in consumer thinking will impact housing prices and demand across the entire market.