How will coronavirus impact city's property market? Experts say it's too early to tell

Real estate experts agree it is too early to say what impact the coronavirus will have on the property market. Photo / FIle

The impact of coronavirus has been felt far and wide. But how will the region's property market be affected? Zoe Hunter reports.

Most local real estate commentators agree it is too early to say what impact the pandemic will have on the market.

Bayleys and Eves Realty Waikato, Bay of Plenty and Taranaki chief executive, Heath Young, said it was too early to understand the full impact of Covid-19 on property prices.

"We are still seeing good volumes of deals transacting over the past two weeks with excellent prices being achieved," he said.

"Looking ahead, we expect to see prices stabilise and come back off recent gains as some of the uncertainty around Covid-19 plays out."

Real Estate Institute of New Zealand chief executive Bindi Norwell said it was business as usual, as much as possible, in the Bay's housing market despite obvious concerns around Covid-19 and what its effects might be.

Veros Property Services managing director Morgan Jones. Photo / Supplied

Norwell said some agents had experienced a slight dip in the number of people attending open homes.

The Government banned mass gatherings of 500-plus people but Norwell said REINZ was waiting for further Government advice regarding smaller events such as open homes, auctions and rental viewings.

"We are also recommending the real estate profession look to technology solutions such as the use of online/phone bidding at auctions or virtual reality tours for open homes and rental viewings."

Norwell said the biggest concern was the community fear around job security and whether banks would continue lending in light of Covid-19.

OneRoof editor Owen Vaughan. Photo / File

OneRoof editor Owen Vaughan said people still needed to buy and sell property despite the period of uncertainty for the housing market.

"While there may be a flattening as a result of uncertainty in the economy, there is nothing that suggests there is going to be a market crash or people should stop looking to property as an investment."

Bayleys and Eves Realty Waikato, Bay of Plenty and Taranaki chief executive, Heath Young. Photo / File

General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said there was caution because the impacts of Covid-19 was "very much an unknown".

In the meantime, Jones said his company was monitoring its policies and procedures.
Jones said staff were following the Ministry of Health guidelines and REINZ's suggestions around open homes, auctions and rental viewings.

He said staff were mindful of people who could be sick, sanitising things like door handles and light switches, limiting the number of people coming through open homes and holding auctions outside in open areas rather than in enclosed spaces.

The good news, Jones said, was at its lowest with the Official Cash Rate significantly reduced and interest rates dropping even lower.

"Our open home numbers haven't dropped much at all," he said.

"There are still a lot of people wanting places to rent. Investors are still going to find it reasonably easy to find a tenant."

Real Estate Institute of New Zealand chief executive Bindi Norwell. Photo / File

Tauranga Property Investors Association president Juli Anne Tolley said Covid-19 had put the world on notice.

People still need to find a place to live, but we just have to take more precautions when meeting and greeting potential tenants, following the guidelines issued from the Ministry of Health."

Tolley said some landlords were considering holding off on inspections but a noted impact was some holiday rental owners were now looking to put their short-term accommodation into the rental pool due to a considerable drop in demand.

"New Zealanders are being asked to return home from overseas and other countries are doing the same, so there could be some movement with tenants as a result.

"It is early days, so we will see what the next few weeks and months bring. There is a lot of speculation and what-if scenarios being played out while we watch other countries and how they are responding to the crisis."

General manager of Tremains Bay of Plenty and Waikato, Anton Jones. Photo / File

General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said there was caution because the impacts of Covid-19 was "very much an unknown".

In the meantime, Jones said his company was monitoring its policies and procedures.

Jones said staff were following the Ministry of Health guidelines and REINZ's suggestions around open homes, auctions and rental viewings.

He said staff were mindful of people who could be sick, sanitising things like door handles and light switches, limiting the number of people coming through open homes and holding auctions outside in open areas rather than in enclosed spaces.

The good news, Jones said, was at its lowest with the Official Cash Rate significantly reduced and interest rates dropping even lower.

"Our open home numbers haven't dropped much at all," he said.

"There are still a lot of people wanting places to rent. Investors are still going to find it reasonably easy to find a tenant."

Tauranga Property Investors Association president Juli Anne Tolley. Photo / File

Tauranga Property Investors Association president Juli Anne Tolley said Covid-19 had put the world on notice.

"People still need to find a place to live, but we just have to take more precautions when meeting and greeting potential tenants, following the guidelines issued from the Ministry of Health."

Tolley said some landlords were considering holding off on inspections but a noted impact was some holiday rental owners were now looking to put their short-term accommodation into the rental pool due to a considerable drop in demand.

"New Zealanders are being asked to return home from overseas and other countries are doing the same, so there could be some movement with tenants as a result.

"It is early days, so we will see what the next few weeks and months bring. There is a lot of speculation and what-if scenarios being played out while we watch other countries and how they are responding to the crisis."

Veros Property Services managing director Morgan Jones said the region was still coming to grips with what coronavirus would mean for the housing market.

"We are still trying to figure it out. The reality is it only hit the Bay this week," he said.
"There is still cheap debt out there but conditions around that will tighten. That whole decision making and investment confidence will dry up in the short term."

Jones predicted numbers of open homes could drop, as well as a shift in property inspections and auctions being done online.