This is not a doomsday prediction. This is simply the date when knows become unknowns.
So what DO we know about October 1st?
• We know JobKeeper benefits will likely finish for 3.5 million Australians
• We know commercial rent assistance will end and deferment repayments may begin
• We know mortgage deferrals will likely end for commercial and residential owners
• We know the “No Eviction” moratorium for commercial tenants will likely end
• We know 43% of our tenants are currently relying on one or more of these incentives
What we DON’T know is how the almost 730,000 businesses enrolled for these benefits
will cope when the tap is turned off and October wage, mortgage and rent bills come due.
What do we know about today…
The facts show that we remain in a favourable window of opportunity for sellers today:
• Enquiry across the Northern Corridor has recovered almost to Pre-COVID levels
• The number of new properties for sale are 28% below 2019 and 50% below 2018
• Investors are actively searching for “safe haven” properties (2 or more year leases)
• Owner-occupiers in the Essential Services Boom are expanding to meet demand
• Bank valuations are yet to be gravely impacted by distressed sales evidence
• Readership & “Views” across property web platforms are at record levels
• Advertising & marketing for selling property at extremely discounted rates
What does this mean for Property Owners?
There are more buyers, competing for fewer new properties right now.
There have never been more people searching and the marketing packages that get
properties in front of this audience are heavily discounted.
Not every owner should sell. But for those at either end of the spectrum, looking to
insulate from or capitalise on what is coming, the question you need to answer is:
“Would I rather be holding the cash or the keys on October 2nd?”