The COVID pandemic has driven many to work from home. Businesses closed down, people lost their jobs. Most operate their business from home which has now become the norm. The real estate industry has changed too. Tey Yong Qing, a property manager, and real estate agent elaborates on the effect of COVID on real estate.
The steps to take to purchase a new home are different from before. This article brings to light the changes that have occurred in real estate due to COVID.
Tey Yong Qing Explains Effects of COVID on Real Estate
COVID has made a significant impact on real estate. Due to the stay-at-home regulations, few people were interested in purchasing new houses. Buyers couldn’t go out to check out the properties listed for purchase. They needed to observe the health and safety guidelines. Hence, the demand for new homes declined. Some sellers didn’t want to sell their houses to the buyers. The hesitation of house owners to list their homes made it difficult for buyers to find houses to buy.
Housing became a huge concern for the government. Those who lost their jobs couldn’t afford to pay their mortgages or buy a new house.
The rate of job seekers has not reduced so there is a continuous housing problem.
On a positive note, a home purchase is slowly increasing after the first lockdown. This is because things are gradually becoming normal.
Home renters are considering having their own homes. This will give them the security that they are homeowners.
Homeowners want to convert their houses into home offices, homeschooling areas, eateries, and play areas. While it’s true that house sales decreased during COVID, home conversions have increased.
Digitalization of Real Estate:
Every single sector has moved to digitize its industry during COVID. The need for physical presence is limited. Business owners devised the means to use technology for their business. Technology made it easy for them to operate their businesses from home. They were able to cater to their customers and retain most of them.
Real estate professionals, interested homeowners, middlemen, use online platforms to interact. Real Estate experts developed websites and apps that have payment portals. They created the house and properties content and posted it on the websites. Visitors can go to the websites, check out the homes and properties in detail. They can use digital tools to have a virtual tour of the houses and properties.
In the past few months, real estate has undergone a digital change. Buyers, middlemen, and real estate investors have learned to adapt to the changes.
“I have seen how much technology has made life easier for us and our clients,” says real estate expert, Tey Yong Qing.
The use of augmented and virtual realities, three-dimensional systems, and AI has improved buying and selling of properties.
Increase Demand for Home Offices:
The rise in outside office jobs (working remotely) affects real-estate demand crucially. It rapidly influences the choices of the customers in terms of listing the properties. It also impacts the layout and proportion of the house (demanding large houses that have many spaces for use). The effects of the change are seen in the real estate sector. This is because city planners need to accommodate the current trends.
Modifications in our work-way impact our lives. It assists in accelerating financial evolution to more bearable eco-friendly policies. Customers have continuously remained attentive to matters relating to sustainable houses. This includes their power efficiencies.
More focus is being placed on them after the recent lockdowns. The pandemics have revealed flaws in some homes that don’t satisfy the barest health regulations. What can be done in this aspect is to modernize the houses that already exist. That is why they develop such buildings according to varied sustainable criteria. These are better than the old buildings.
Access to Accommodation and Rent Demand:
The pandemics have influenced rent demand. Rental demands of short-let apartments for tourism have increased over the years. As the tourist industry declined, the buildings gradually became empty. They were to be converted to traditional rented homes by individual owners.
These will change when tourist industries bounce back though it might not entirely be undone. When owners recognize great unstable returns in the investment, they might decide to stick to those processes.
Sadly, the pandemic brought out the problems faced by helpless people that reside in rental homes. They are unable to afford costly homes.
However, governments have put up different models that will assist tenants during the pandemics. These include putting off eviction till the year ends. There is the instant renewal of a half-yearly contract. It also includes providing small credits to serve as rental payments. This enables the present public emergencies to be handled.
Nevertheless, house-rent demands are being affected by structural crises. These crises need permanent laws that promote enterprises. Emphasis should be laid on creating sufficient numbers of housing for people to rent easily.
COVID has affected the real estate industry but it has also brought improvement to the industry. There has been the frequent use of digital tools to make things easier. Tey Yong Qing hopes sellers and buyers will make use of this opportunity.