Picture: SANDRA MORELLO
MOUNT Gambier’s real estate sector is in a strong position to withstand headwinds fuelled by the COVID-19 health and economic crisis.
While the number of sales and new listings have tumbled, real estate agents reveal it is “business as usual” for the sector.
Despite open inspections and onsite auctions ceasing due to COVID-19 restrictions, realtors are continuing to sell properties and field calls from potential buyers.
One prominent realtor has flagged the regional market could boom post-COVID-19 due to some people wanting to escape densely populated metropolitan centres.
Historic low cash rates, combined with government stimulus and JobKeeper payments, are expected to steady the region’s property market.
Optimistic the sector would “bounce back” when restrictions eased, Miller Whan and John realtor Garry Hardy said the property market was holding firm during the COVID-19 restrictions.
While some of the deals and negotiations stemmed before the restrictions were swept in, he said the agency continued to take inquiries from potential buyers.
“The market has not slowed as bad as what people may think,” Mr Hardy said.
But these inquiries are now “localised” due to the South Australia border restrictions.
“We are getting no inquiries from across the border in Victoria and really not much from outside of our local district,” Mr Hardy told The Border Watch yesterday.
However, he said this was not a massive blow given traditionally the majority of buyers were from within the district.
“The first thing we had to scramble with was when we were hit with suspension of auctions – we actually had three on go,” the real estate identity said.
While there was the option of online auctions, he said the agency had yet to go down that track.
“We took the deliberate decision to keep the business’ doors open to continue to provide a service. We have landlords who have been with us for 20 years.”
One of the biggest hurdles facing the sector was the availability of stock.
“We have not had a lot of new listings,” Mr Hardy said.
He said it was also unfortunate to see so many shops closed in the city’s retail precinct.
“We are trying to look after our landlords, our tenants as well as vendors,” Mr Hardy said.
The realtor predicted Mount Gambier’s property market would remain steady through the COVID-19 phenomenon.
“All the things that appealed to people before this, will still be the same. The Mount Gambier market is a lifestyle choice.”
Mr Hardy said Mount Gambier posted record median house prices before the COVID-19 pandemic hit the Australian economy.
Furthermore, the Mount Gambier district was well poised to buffer the COVID-19 storm given its strong industry and agricultural sectors.
But he warned the hospitality sector was particularly being damaged by the COVID-19 restrictions.
“I do not think it will make a difference to the price of rural land because agricultural markets are holding up.”
While the restaurant sector was suffering and a number of export markets were being “knocked around”, he said there was optimism given the strength and resilience of the regional economy.
Meanwhile, realtor Jason Malseed said yesterday the sector was navigating through COVID-19 and his business was operating normally.
“Obviously, it is not as good as what it was. There have not been a lot of new listings,” Mr Malseed added.
“Buyers have been sitting on their hands, which is what normally happens.”
He said this scenario was similar during the global financial crisis and other economic downturns.
“They sit on their hands for a while until the market booms,” Mr Malseed said.
The realtor foreshadowed the market would lift considerably once the border restrictions eased.
“Over the past three to four years, Melbourne and Victorian people were coming and buying a lot of our real estate,” Mr Malseed said.
“Once they are allowed to cross the border and start buying again, I think we will see the market better than what it was.”
Moreover, Mr Malseed flagged the COVID-19 fall-out would push people out of the cities.
“This will be really good for us. People will not want to live in cities crammed in with everybody else,” he said.
“We have lots of people saying when we can cross the border, we want to look at properties.”
Regarding property values, he revealed there had not been enough sales to determine whether property prices had dropped.
“We have been selling less than we normally do, but those sale prices have been the same.”
Mr Malseed predicted major cities would suffer larger price drops given the large property values and pressure on rents and mortgages.
Explaining his agency had an extensive commercial and residential property management portfolio, he said only one commercial property lessee had contacted him because they were struggling to pay rent.
In particular, Mr Malseed praised the Federal Government’s JobKeeper program, which had allowed him to retain his staff.
“We have applied for that. This has helped us immensely.”
Mr Malseed said private inspections – which adhered to COVID-19 social restriction measures – were continuing.
