Four major real estate trends will come to fruition in Australia’s real estate industry in 2020.
Stronger and more diverse population growth
Australia has an average population growth of 1.6% annually. This is due to the increase in immigration. A June 2019 study showed that the contribution to Australia’s population growth through migration is significantly higher at 62.5%, compared to growth through natural increase which is 37.5%.
This is good news for property developers and real estate agencies. Economic experts advise that as the population continues to rise in the coming years, demand for housing and property will also increase.
Lower interest rates
Much like the trend in recent years, interest rates have again been slashed with no indication of rising in the foreseeable future.
Historically, low-interest rates are an attempt to stimulate economic growth and further encourage borrowing and investing. Australia isn’t the only country affected by lowered interest rates. This is a global phenomenon.
Will COVID-19 impact housing approvals and property prices?
Concerning the rise of the COVID-19 epidemic and its impact on the economy, expect an increase in downside risk to the housing market as building approvals look to decrease in the second half of 2020. While building approvals have gone up to 4.9% in the three months leading to January, it’s still 2.3% lower compared to the same time last year.
Is the Corona Virus a threat to the housing industry?
According to Trent Wiltshire, a Domain economist, it could be a threat but only in the short term. While it presents a looming uncertainty, it’s still too early to tell at this point.
Tourism and education are likely to be the sectors that will be most affected by COVID-19. It has the potential to spill out into other industries, particularly the real estate industry, however as of this writing, there’s simply no telling as there is insufficient data to make any assumptions.
More companies will look to outsourcing
In just six years, outsourcing has become a viable, attractive and dependable service for many estate agents.
While administrative services aren’t unique in the BPO industry, the prospect of providing outsourced work for real estate organisations has only recently started becoming more mainstream. Many real estate agents have been pleasantly surprised by how much more efficient their organisation has become after engaging with an offshore team.
Expect more and more agencies to outsource their tasks to offshore providers for operational cost advantage, leaving room for their property managers to build stronger relationships with current clients and bring in new business.
If you’re interested in outsourcing, at Stafflink we are more than qualified to guide you and provide you with the best possible service your business deserves.