Realtors brace for earnings hit from coronavirus impact

Australian real estate agents are more concerned about COVID-19 than their global counterparts, expecting a hit to earnings.

A house for sale sign in Alhambra, California. Sales of new homes were strong in January, but the virus outbrea is expected to hit sales in March and April. Picture: AFP

Australian real estate agents are more concerned about COVID-19 than their global counterparts, with 84 per cent of local realtors expecting to earn substantially less income in 2020 compared with previous years.

The first international survey on the pandemic’s effect on real estate reveals 68 per cent of Australian agents believe now is a good time to buy a residential property, with 16 per cent saying they will increase investment in marketing to foreign buyers to help offset some of their lost income from the virus’s effects, according to the report from the Shanghai and Hong Kong based Juwai development group.

Sydney agent Mitchell Soineva from Belle Property Mosman said the number of Chinese and Australian Chinese buyers had increased significantly.

He is marketing a property at Bertha Road, Cremorne, for $18m and says the number of Chinese buyer inquiries has increased significantly.

“The exchange rates are favourable. I don’t know how they are transferring money. There is something happening that is allowing more Chinese buyers to transact and spend their money in Australia than before,” Mr Soineva said.

On the flip side, one-half of local realtors also believe this is a “good” or “very good” time to sell.

A further 24 per cent of survey respondents say it is a bad or very bad time to sell residential property, according to the ­report.

One-quarter to one-third of agents say market activity by all groups is down. “Activity by local owner-occupier buyers, local investor buyers and foreign buyers has plummeted by one-quarter to one-third. Renter activity has dropped by 14 per cent,” the Juwai report says.

The bulk of the more than 800 Australian agents surveyed, about 76 per cent, expect the corona­virus impact on the real estate market to last more than three months. Eighty-four per cent of those surveyed said 2020 would be a worse than expected year, against the global average of 82 per cent.

Auctioneer James Pratt said there would be fewer listings and fewer auctions coming up.

“There will be some pockets of good news however, because with the Australian dollar dropping, overseas investors are going to find Australia more ­affordable and more appealing.”