The Australian property market has stayed afloat in the midst of the worldwide pandemic that has shaken the global economy. Many people feared the worst for the property industry in Australia, as the market was operating strongly last year and stakeholders expected massive growth to occur in the last half of 2020.

What about renovators? How can renovators thrive during and after the pandemic? We’ll give you an answer to that, but first let’s take a look at the present situation within the property market, including the condition of the rental market and the prospects of the renovation industry.

Current Condition of the Property Market

Despite the pandemic, the property market in Australia had been steady for a while. As the country officially entered a recession due to the pandemic, property demand has fallen.

The good news is that the fall in demand is considerably low, only affecting Victoria and South Australia. The country has seen record-high demand in the Australian Capital Territory, Tasmania, and Queensland. 

Even if the house prices have slightly eased throughout the country, the average prices of properties are higher than they were last year. 

Current Condition of the Rental Market

The Australian tourism industry has been struggling because of COVID-19. Rental services like Airbnb and student housing have suffered the most, with international tenants vacating throughout the ongoing pandemic period.

Landlords are cutting rents in a competitive market to secure tenants, as people are looking for cheaper housing. They are trying various strategies, including renovation and rent cuts to bring in and keep tenants.

If you are a landlord and your strategy is not giving you the results you want, you could try taping into experts via a property management platform like Rentdesk to help with managing your property at this time.

Changes and Future of the Renovation Industry

The renovators need to look at the whole, long-term picture if they want to prosper during and after the pandemic. Here’s how renovators can find growth areas in the property market during and after the pandemic.

Take Advantage of Low Property Prices

Even with a lower supply, get ready to buy as the property prices fall. Take this opportunity to buy properties that will increase in value later, when you can sell them at a higher price. The prices will not remain low for long, so the time to invest is now.

While the country recovers from recession and the effects of the pandemic, it will go through a lot of changes. As the suffering economy experiences the repercussions of the pandemic, the recovery will require more investments and job creation. 

While many people might currently be skeptical about property investments, you must give them good reasons to buy. Your renovations must be lucrative and catering to consumer needs to attract buyers. 

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Catering to a Changing Nation

The pandemic has enforced mass digitization globally, pushing people to rely on technology and work from home.

Owning a diversely functional home has become a necessity. Making changes like adding studies, rooftop gardens, recreational zones, etc will make your property more attractive to buyers.

A lot of people might decide to continue working from home even after the pandemic. With many certified online courses available now and at a cheaper price, many might decide to study online.

Many businesses are taking advantage of these changes and will continue to do so in the future. In the past, most people did not think of having a study room as a necessity. But, the new normal is having a workspace at home.

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Buy Cheaper Properties

There is nothing more intensely satisfying than taking a low-grade property and turning it into a lucrative buy. The sales of A grade and B grade housing have been steadier than lower grades, as buyers are unwilling to compromise quality.

People do not want C grade properties. You can buy these cheaper properties and make them more attractive. Buying a cheaper property will cut your cost of purchase and leave you more capital to spend on the renovation.

You are adding more value to something people once considered not worth buying. People want to buy fresh, renovated properties. They are willing to invest in something worth buying. This is a great window of opportunity for renovators.

Think Long Term

Buy the properties and do the renovations now. Do not be disheartened if the properties are not selling, or if the prices are low at present. Think of the long-term and consider waiting before putting it for sale. Instead, consider renting for now.

Neither the pandemic nor the recession will last forever. Once the economy recovers and the tourists and the visa holders return, the country will thrive once again. The house prices will increase, yielding higher profits from your current investments.

Play the waiting game. Buy now and sell later. Invest in renovations now for a higher profit later. Rent it out at low prices now, but know that prices will increase in the future.

Final Thoughts

The property market in Australia held up pretty well during the early part of the pandemic. Even if the market conditions are bad, the lowering prices present a great opportunity for renovators.

Due to the pandemic, people are unwilling to shift or sell houses, as they are trying to grasp for some stability. Despite property prices dropping, there is a surprisingly low supply of listings nationally. Renovators should purchase these properties fast before the supply depletes.

Renovators can expect growth if they play their cards right, despite the low supply. The property prices would not remain low for long. The time to buy and renovate is now.