South Forest Hill Residences.The global property market in the post-epidemic era. Although the COVID-19 epidemic in many countries around the world has not been completely stopped, analysts are confident about the property market in the next two years.Please Visit: South Forest Hill Residences to Get Your VVIP Registration Today!
Real estate market analysts believe that under the influence of economic rebound, loose monetary policy, government fiscal stimulus, backlog of housing demand and tight inventory, house prices in most countries of the world are expected to increase to varying degrees in 2021 and 2022.
At the same time, the COVID-19 epidemic has also had a structural impact on the real estate market: more and more buyers are choosing to stay away from the cities and buy houses in the suburbs. At the same time, millennials have replaced baby boomers as the new home buyers.
Although the COVID-19 epidemic has suffered the biggest impact on the US economy since World War II, it has had little impact on the US real estate market. Brett Ryan, senior US economist at Deutsche Bank, said: “although the number of COVID-19 cases in the US continues to hit an all-time high, the recent deterioration of the COVID-19 epidemic has not had any significant impact on the property market, and US real estate transaction volume is close to a record high.”
In fact, the situation in the United States is not isolated. At present, the property market in many countries and regions around the world has recovered.
According to a Reuters survey of more than 130 real estate market analysts between January 15 and February 15, analysts believe that average house prices in most countries around the world will rise this year and next.
“more fiscal stimulus, still low mortgage rates and unmet demand during the outbreak will provide solid support for the recovery,” said Gregory Daco, chief US economist at Oxford Economics.
Among global markets, Australia and Canada are expected to see the biggest increases in house prices, boosted by low local mortgage rates and heavy fiscal spending.
House prices in most of Australia’s major cities are expected to rise by 10 per cent in 2021, while average prices in Sydney and Melbourne, the two most expensive regions in Australia, will rise by 7-7.5 per cent, according to National Australia Bank. The Commonwealth Bank of Australia made a similar forecast, predicting that average house prices across the country would rise 9% year-on-year.
Robert Hogg, senior economist at Royal Bank of Canada, said he expected national benchmark domestic prices to rise 8.4 per cent and the resale rate to rise 6.5 per cent to the strongest level in Canadian history.
The survey shows that the prospects for the property markets in the UK, Dubai and India are slightly milder than those in other countries.
Under the influence of the COVID-19 epidemic, many countries and regions around the world began to encourage telecommuting, and many people were forced to work from home for months. As a result, suburban mansions that are far from the city center but are larger and of better quality have become more popular.
And many companies (especially Internet technology companies with a majority of young people) have gradually realized the feasibility of the home-based work model for their employees, and have announced that they will continue to work from home after the end of the epidemic for the purpose of cost saving. in order to save office property costs. This means that the heat of suburban houses will continue after the end of the epidemic.
According to CoreLogic, an Australian housing information provider, house prices in rural and suburban Australia rose much faster than in cities in 2020. House prices in Australia rose 3 per cent in 2020, 2 per cent in eight cities, including Sydney and Melbourne, and 6.9 per cent elsewhere.
Robert Hogue, senior economist at Royal Bank of Canada, said the COVID-19 epidemic had permanently changed the buying behaviour of some people, driving many buyers to the suburbs, leading to a downturn in the rental market in big cities and an increase in household savings.
In the post-COVID-19 epidemic era, millennials have gradually become the main force in the real estate market, and the purchasing power of high-end real estate is not weak.
According to the National Association of Realtors, millennials (born in 1981-96) now account for 38% of American home buyers, making it the largest group of people of all ages.
Millennials are the most educated generation in history, earning more and inheriting more than any previous generation, according to a report by the Brookings Institution (Brookings Institute) in May 2020. This means that their purchasing power may be stronger than many people think.