Buyers’ land of plenty
BUYERS are overcoming the uncertainty of the COVID-19 pandemic in the one property sector where supply hasn’t taken a hit — new land.
After an initial pause when social distancing laws took effect, agents say buyers are returning to put deposits on blocks at estates across Geelong’s growth corridors.
A $20,000 grant for firsthome buyers and record low interest rates are supporting the market, but Maxwell Collins director Nick Lord said deferred settlements to allow civil construction and titles to be created were providing an advantage in uncertain times.
Mr Lord said land supply hadn’t been impacted during the pandemic, a key reason allowing demand to recover quickly.
“As we’ve seen in the established market, people have not listed their houses or taken them off the market, so buyers have got less choice,” he said.
“Then sales might drop off, whereas land supply has been continuous.”
Mr Lord reported 10 sales in 10 days at estates at Armstrong Creek, Highton, Lovely Banks and Indented Head, in line with sales rates in January, February and March.
“Going back about six weeks ago, our inquiry rate was very strong,” he said.
“People were quite positive about our estates.
“They just wanted to wait three weeks until they knew what was happening with job security. What we’ve seen is those people have been transacting, even though their inquiry-to-purchase time frame over the last couple of months has pushed out by a couple of weeks longer than normal.”
Villawood Properties executive director Rory Costelloe said buyer uncertainty was settling as buyers’ initial wage and job concerns abated.
“We’re finding a number of potential purchasers who were thinking of pulling out due to the quarantine are now more confident,” he said.
“Many had been afraid of losing jobs rather than be out of work.”
Hayden Kelly and Sarah Lenaghan have been renting at Mount Duneed since moving from Queensland in 2018 before buying last week.
With two young children, they elected to buy regardless of the lockdown, seeing positives in their move.
“We were confident in buying as we both work in health care so our jobs are relatively secure,” Mr Kelly said.
“We also thought that, coming out the other side of the pandemic, some builders would offer good deals.
“Also, with our land titling in 12 months, it bought us more time to keep saving for the build.”