Global markets plunged following an extensive sell-off amid worsening news surrounding the coronavirus outbreak. The World Health Organization said on Thursday that the outbreak could become a pandemic. It may be too early to assess the impacts on the Real Estate sector, but industry players are certainty paying close attention to how the situation develops.
Looking back at the past two years, market performance had been dismal due to Brexit and the trade war. These macro events pushed central banks around the world to cut rates, which helped to fuel global economic growth. In the Real Estate space, demand had increased steadily as buyers benefited from favourable lending conditions.
What caught our eyes this week
Australia’s central bank will hold its cash rate at record lows next week and cut twice later in the year, a Reuters poll showed, as a rapidly spreading coronavirus outbreak threatens to rock economies around the world.
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Amid COVID-19 fears, real estate investment manager LaSalle Investment Management believes that there are many reasons for optimism on the Asia Pacific market, such as low-to-zero interest rates, ample liquidity and increased monetary and fiscal stimulus.
Commercial deals in Adelaide hit record heights over 2019 as transaction volumes reached $1.99 billion across all commercial sectors, accounting for 9 per cent of commercial deals across the country.
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PropTech is reshaping Australia’s $7.8 trillion real estate market—the largest asset class in the country—by ironing out an industry riddled with inefficiencies.
Read also: Blockchain in Real Estate Investment: Hope or Hype?
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Governments across the world are starting to use more fiscal firepower to boost economies, though the shift may not be happening fast enough to appease central bankers who say they’re sick of carrying the burden of stimulus alone.
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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.