HAPPY NEW FISCAL YEAR

Reflecting on the year that was and gazing into the property crystal ball

IF anyone accurately predicted the first half of 2020, can I please have your recommendations for Lotto numbers this week?

It’s been a turbulent six months by any stretch, and the short-term is likely to offer similar volatility as 2020 solidifies its reputation as the year of COVID-19. As we plunge head first into a new financial year, I thought I’d reflect on the past six months – and forecast what may be ahead for the Cairns property market.

After starting the year with promise as sales picked up pace and rentals continued along a strong market trajectory, all bets were off by March as economic and travel restrictions piled on, businesses closed and planes left our skies. Unemployment skyrocketed and sales numbers dwindled as sellers fled the uncertainty.

Understandably, buyers became hesitant to commit to a sale when job security was lacking.

As “flattening the curve” became the national catchphrase, the anticipated health disaster was averted and we’ve now seen several months of the State and Federal Governments firing to get the economy back on track.

JobKeeper has helped to sustain employment through the worst of things, and significant stimulus packages have been implemented – most notably for construction with the HomeBuilder and its $25,000 boost in June.

As restrictions on inspections have eased, sellers have regained confidence and buyers are now taking advantage of record low interest rates. Listing numbers remain well down on usual levels though, creating an interesting environment where some properties are seeing better results than pre-COVID as buyers vie over those few suitable homes on the market.

“Land ahoy!” will be the cry of builders, developers and above all first home buyers for the next six months as the combination of the $25,000 HomeBuilder and $20,000 First Home Buyer Grants has seen land sales take off, with some developers selling out of entire stages within a week. This week should see the confirmation of the detailed rollout of this much advertised boost, which hopefully will do what it’s designed to do – to make entering the property market more affordable, and to keep construction going.

The reopening of Queensland’s borders (with limitations) provides a glimmer of hope for Cairns locals, with the hope that southern investors or those looking for a sea change will return to our market.

As always, presentation, promotion, pricing and the right agent are your keys to success.