Dolly Lenz
Local aspect
WITH JENNY LENZ
PENINSULA SOTHEBY’S
Rob Curtain Our biggest challenge will be our secondary/lifestyle housing market, which can’t avoid being affected by this pandemic. Stock market crashes, recessions and even the GFC pale into insignificance in terms of the impact this will have on so many, including the wealthy. Many of our secondary market clients are landlords or major shareholders of large cap companies, or hold (held) well-paid executive jobs. Few will be spared some level of fallout. The market here will benefit from people not travelling, retiring sooner to the coast or taking advantage of the low Australian dollar. However, countries such as Hong Kong know how to live during times of social distancing and we can only hope Australians are quick learners. Government restrictions will have little or no impact on the way we transact sales. Over the past six years, 99 per cent of all of our sales, including many of the Peninsula’s highest, have concluded by private sale or boardroom auction. Very few, if any, multimillion-dollar homes are going to be sold by virtual or video tours without someone attending a private appointment. RAY WHITE RURAL
Stephen Nell
Vacation comfort in The Hamptons, an area more in demand than ever
NEW YORK CITY & THE HAMPTONS
Holding pattern April in New York is traditionally an exciting time as the city sheds the last remnants of winter and the real estate market begins to heat up with the start of the spring selling season. What normally is the most anticipated season for real estate, brokers has been completely up-ended as New York has become the epicentre of the coronavirus pandemic in the US. The pandemic has brought New York to a standstill and all non-essential businesses have ceased to operate. Like so many other industries, real estate has been hit hard, as in-person showings, open houses, and offices have been closed for the time being. While transactions currently under contract are closing and deals in negotiation are continuing to be consummated, many buyers are pumping the brakes and taking a wait-and-see approach before proceeding into new deals. Although we are still in the early stages of the pandemic, we see no indication of prices coming down. While there will always be situations where sellers must sell and will reduce prices accordingly, overall we see no signs of price declines as a result of the pandemic. What we do know is that real estate volume will be substantially reduced as deal flow slows considerably. What we are experiencing is an early start to the Hamptons rental season, as NYC elites, prompted by a desire to exit a city under virtual lockdown, are snapping up properties as fast as they come onto market. Moreover, instead of waiting to begin the rental on Memorial Day (May 25) as is the norm, they are signing leases two 20
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months earlier, beginning on April 1. Rental prices in the Hamptons are rising commensurate with the increase in demand, to the delight of local residents. Given recent sales data, one would think the last place needing a boost to its real estate market would be the Hamptons. Closed transactions include a $US18.350 million ($29.99 million) 6ha estate in Bridgehampton; a $US41 million, 929sq m oceanfront mansion on Southampton’s famed Meadow Lane; and another nearby Meadow Lane property, considered a tear-down, just sold for $US30 million. Yet here we are – and we expect this region to remain hot for the foreseeable future. Responding to official appeals to stay home, many would-be buyers continue to actively search online and the real estate industry has quickly adapted to a fully virtual approach to reaching those clients. While virtual resources have long played a tremendous role in the search for real estate, the internet is now the only viable means for buyers and sellers/brokers to interact until developments return to some level of normality. Buying and selling real estate is truly a confidence play and we expect agents to be doing some serious hand-holding as they shepherd both buyers and sellers into the future. Dolly Lenz heads New York-based Dolly Lenz Real Estate and last year sold more than $US500 million worth of luxury US and international homes. dollylenz.com
We’re moving into a new normal where we have a great opportunity to bring the future into the present with our technological tools. We have seen our agents across the country use virtual inspections and auctions with great success, and I expect that’s something the rural industry will want to replicate. Our members have been working around the clock to photograph and video all our properties so we’re adequately future proofed, with one agent spending eight hours a day videoing their current listings. There’s a rural property in Victoria with a significant amount of infrastructure, and a huge effort has gone into the imagery and videography. It feels like you are there. It’s too early to speculate on what the impacts will be but inquiry numbers are relatively good given the uncertainty. People will always gravitate towards property when a significant event occurs. When stocks and shares are fluctuating, people tend to prefer investing their money in bricks and mortar. There will be pent-up demand when we come out the other side. MCGRATH ESTATE AGENTS
John McGrath Social and economic events of this nature have been a catalyst for people to reassess both their investments and their priorities and this is why we’ve seen them surge back to property as they quickly revert to the blue-chip assets they have faith in. Australian residential property is considered one of the safest assets and now our currency is providing strong discounts to expats and overseas buyers. There are few if any signs of panic selling, especially at the top end, with most vendors either maintaining their listings or choosing to sit on the sidelines until this passes. I expect the low-volume listing environment to continue in the short term and this will also protect any significant price corrections. Sydney and Melbourne are most in-demand from wealthy expats and there is a very limited supply of blue-chip positions, so demand will outstrip supply in the medium term. With a low Australian dollar our market has become even more attractive. THE WEEKEND AUSTRALIAN
| APRIL 11-12, 2020
