During these difficult times, the real estate market generally has shown remarkable resilience.
At a time when it has recently been announced that the Australian economy grew by 3.3% in the September quarter, led by consumer spending, it is timely to once again review our progress in dealing with the impacts of Covid-19.
The effects of the global Covid-19 pandemic continue to significantly impact the world. At the time of writing, there had been 63.8 million positive cases reported globally, resulting in almost 1.5 million deaths. This compares with Australia’s current positive cases of just under 28,000 and deaths of 908.
What has been extraordinarily encouraging since I last summarised the situation in September, is the enormous success that Australia has achieved in restricting and containing the pandemic. We currently have only 56 active cases and there has only been one death in the last month in the whole of Australia.
Whilst I have previously stated, the death of a loved one is an extremely sad and emotional event, the initiatives put in place by Australia’s governing bodies and medical organisations, now appear to have contained Covid – 19 and its previously devastating impacts across our communities.
As I write this update, there is talk of the further easing of restrictions that had previously been in place which will bring us back closer to a “normal” existence. This is particularly positive news for the hospitality, domestic travel and entertainment industries. Further, with news of the imminent approval of various vaccines, foreign travel could be closer than previous thought.
The main Government and Banking support initiatives remain in place, albeit with some at reduced levels. All eyes will be on the potential impact the removal of these initiatives in early 2021 will have on the economy and community.
During these difficult times, the real estate market generally has shown remarkable resilience. Exceptions to this have been some office markets and retail locations, where the impact of forced shutdowns had a devastating effect, resulting in a massive over supply of available space, rental decreases and increased incentives.
On a brighter note, the demand for well-located industrial assets has never been greater, the sale of securely leased properties across all assets classes continue to be transacted at record low yields and in the month of November, house prices grew in every state across Australia.
So, as we approach the Christmas and New Year holiday period, there are reasons for us all to be positive about what lies ahead.
It is on this upbeat note that on behalf of everyone at MMJ Real Estate, I would like to take this opportunity to once again thank our loyal clients for your continued support and to wish you and your families a safe, happy and relaxing festive season.
Chris Johnson , CEO – MMJ Real Estate