In just a matter of days, investors find themselves in the middle of an investment minefield. Equity markets are being ravaged, commodities prices have plunged while interest rates reach new lows. Governments and Central Banks scramble to release monetary and fiscal stimulus measures but the limits of their impact remain in question as the pandemic situation continues to evolve.
While natural instincts have led many investors to retreat to cash positions, we see a silver lining in the Real Estate sector as investors take advantage of the almost-zero interest rates.
Analysts are still optimistic that the pandemic is a transitory event that affects immediate pricing, but Real Estate investment is of a relatively longer term nature and the currently heightened desire to liquidate assets could yet yield attractive entry points for accredited investors.
What caught our eyes this week
A flash survey conducted by the National Association of Realtors of more than 70,000 residential members showed that about 78 percent of respondents said the situation had not changed homebuyer interest in their markets.
The Reserve Bank of Australia has cut official interest rates to a record low of 0.25 per cent as it forecasts “significant job losses” and attempts to shield the economy from the financial fallout of the coronavirus pandemic.
Sales of supermarket real estate hit a record high of $387 million in 2019, according to a new report by JLL, as investors favoured non-discretionary retail assets over those more exposed to online shopping.
Read also: Guide to Investments in Singapore
The COVID-19 outbreak is likely to compel many investors to moderate their purchasing this year, according to CBRE’s Asia Pacific Investor Intentions Survey 2020. However, the survey – which focuses on the forward-looking views of real estate investors in Asia Pacific – found that investors displayed a healthy investment appetite overall, with over 75% stating that they plan to be more or as active in 2020 as they were in 2019.
Nick Leeming, chair of Jackson-Stops, a UK estate agent with 40 offices nationwide, said on Monday: “As an industry, we are yet to see the impact of COVID-19 on the market, however if fewer people opt to holiday abroad over summer, we could perhaps see an increase in activity in this traditionally slower period.”
Read also: Investing in the UK Real Estate Market
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Disclaimer: The information and/or documents contained in this article does not constitute financial advice and is meant for educational purposes. Please consult your financial advisor, accountant, and/or attorney before proceeding with any financial/real estate investments.