On Thursday, April 2, 2020, the pandemic COVID-19 reached a number of a million infected people which had put an alarming signal to the whole world. This had put a stop to operating businesses. Stay-at-home policies are enforced strictly in which penalties had to be imposed. Liquor bans were also in force which closed most of the pubs and restaurants. And the worst was, threats go to those who would disobey.
The global economy is on a downward slope and is almost in recession. This shakes every investor’s thoughts on how to liquify bonds, stock investments, and the most profitable of all, real estate properties. Property management services have become less sought after, although they are proven to have high effectiveness in terms of real estate management.
What should be the market dealing with COVID-19?
As analysed by many, this never-before-uncharted event is the most challenging times for the global market. It started to follow a downward trend from February and most certainly reached its most volatile movement last March.
Knowing that eventually, this too shall pass, the workforce is just practically on standby. That, if all goes well and this virus could be once again controlled for everything to come back to normal, the global economy may bounce back on its feet again curbing what it had lost probably faster than it went halted.
What’s worrisome in the entire situation though is that the longer everything is put on hold, the harder the bounce will come by. People will run out of means to live since businesses are forced to lay off people to stay afloat. Supply will start to diminish since nobody is actually working.
This effect forces ordinary employees to liquefy their long-term investments and emergency funds just to have the means to go through without employment. This makes people hoard their money as much as they can as part of their preparation for whatever will come.
Needless to say, the people, no matter how you discourage them not to panic, perceive this as an emergency. Therefore, people panic buy and hoard whatever they can, affecting supply and demand grievously, making the prices of products and commodities hike up.
While there are other means to cope, people tend to behave irrationally. Businessmen see this as an opportunity to increase the prices of masks, for example, because they know there’s a great demand for it. Same goes with the tissues and food. Selfishness becomes the ultimate effect.
This way, the global economy suffers.
Impact on Property Agencies
Physically, there’s lurking threat of the virus all over the world. As it takes 14 up to 21 days to show symptoms of the pandemic disease, property agencies are greatly affected with the “work-from-home” policy as some clients either call, walk by, or are referred to their offices.
Real estate is an investment that cannot be liquefied right away. It takes time to find a buyer that you can cut an agreement with, most especially at times like this, where optimum wellness is of concern above whatever investment.
People choose to hold on to liquid assets because of rising unemployment and economic instability. They understand the risk behind properties not getting sold. For those who probably would hit 2 birds in 1 stone because everybody has to stay home, ditching an apartment in the city for a property may serve them good. Each member of the family can share in buying a property to live in for a while to reduce expenses that individual apartments may incur. This property, in turn, could be a source of income later on anyway. But property agencies cannot rely on these since there’s not much who think this way or who had been ready for a catastrophe like this.
With the stay-at-home policy in force, many apartment landlords benefit on the business they have since it stays in-demand. But selling and buying may take a while which could be painful.
COVID-19 had impacted the whole world on a negative note. The effect of it on the economy and even politics have become unpredictable.
You may have been eyeing property because of its remarkable potential considering how it will flourish in its location. You might also have a budget set out as property management fee. But since everything is put on hold, the movement of people and businesses are shut. These limitations are perceived as a threat by the people. Some leaders are seen in a bad light because of the rules they had imposed.
What can be done to counter its effects?
Real estate agencies that conform to these changes by accepting its effect as early as possible are thinking of how to make virtual open houses where potential clients can take advantage of low-priced properties at this time. This is putting online what clients may need and want to see. This way, face-to-face meetups wouldn’t be necessary, therefore observing isolation but not necessarily depriving real estate agents of work while at home or therefore not effective their means of income.