Property Markets Around The World During Covid-19 Outbreak
The property markets are definitely feeling the effect of a deadly corona virus outbreak in Wuhan, China with lesser inquiries coming from the Chinese buyers.
Two individuals who were tested positive for the infection visited one real estate agency in Adelaide, Australia resulting to have temporarily shutting down its office. Thailand and US property markets are struggling to recover from the cessation of activity and interest by the Chinese, underlining the impact of the outbreak on the sector.
Chris Dietz, Executive Vice-President of Global Operations at Leading Real Estate Companies of the World, said that the prolongation of the virus epidemic crisis into February has totally shaken the Thai real estate market as Chinese buyers are the main target market for real estate developers.
The prevention on the human-to-human transmission of the virus decision made by the members of the China Real Estate Association to suspend businesses at their mainland sales offices has made it hard for investors to purchase property overseas.
Buyers also deferred viewing, freezing purchase plans as several mainland towns are on lockdown due to the epidemic, while many countries have issued travel bans. The number of confirmed cases of coronavirus in China has reached 77,000, and the death toll has risen to more than 2,000.
According to property portal Juwai IQI, the Mainland Chinese are “the largest cross-border luxury property buyers in most markets in Asia and North America.” Thailand, the US and Australia are just a few of the markets that rely on Chinese buyers to boost their property segment.
Buyers have less desire to buy in the short term if it is not clear when they are going to visit the house. The virus could potentially reduce demand over the long term if these problems escalate and extend travel restrictions and quarantines into other countries and regions
One of the consequences of the virus scare for London-headquartered Quintessentially Estates is less home viewings by prospective buyers. The recent corona virus outbreak has dominated the news agenda and its effects are now felt throughout the real estate industry, especially in key global wealth centres.
Due to the outbreak, property agencies have seen lesser clients travelling even they have been searching for ‘clean’ places to invest, resulting in a number of immovable viewings being conducted through video links.
Nicholas Vaughan, a partner in the private property department at law firm Withers said that the effect of the outbreak has yet to be fully absorbed and digested. It is also still too early to say whether the corona virus would impact the Chinese demand for properties in London.
As Juwai has noticed less Australian property buying inquiries, as pattern consistent with previous Lunar New Year holidays. George Chmiel, Juwai IQI’s Executive Chairman stated that he believed those people use the website and the call centers less because customers are overseas and travelling.
What do you think of the impact of this corona virus outbreak on Malaysia’s property markets? Share your outlook on this to us!