It’s easy to look with doom and gloom at the Coronavirus situation and imagine that this could be the death knell for the property market. Why would you make the biggest investment in your life at a time of great economic uncertainty? Furthermore, the government has requested that the market effectively shut down while we fight this pandemic. In the short term, will there be disruption and pressure on pricing? Yes. In the longer term, is the market doomed? I am going to stick my neck on the line and say that property is set for a strong recovery.
Before the pandemic struck there was a shortage of supply and an increase in demand for good property. That dynamic has not changed. Meanwhile supply has been interrupted and the housebuilding ‘boom’ will take some time to reignite, allowing demand to grow again.
Another reason to expect a pick up in the market is that interest rates will be held low for some time to come unless or until the economy recovers.
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