Amidst the chaos that COVID-19 is causing in the medical and economical sectors, the real estate industry is one of the many things affected by this crisis.
As thousands of Filipinos are out of a job and the entire Luzon being on lockdown, business industries are affected inevitably. The Philippines stock market has already suffered from the trading being on hold for 2 days. The index fell to 24% triggering a circuit breaker. Some are perhaps in fear that we will be back to the 2008-2009 levels where the great recession occurred.
Some people say that this lockdown showed a lack of transparency for investors that felt trapped in the market by taking away their exit mechanism. But experts say that this is simply a lack of coordination since the pause of operations was to comply with the government’s guidelines due to the containment of the virus.
Stock prices are way out of the normal range
The two days shut down earlier in the beginning of this pandemic was punished by the foreign institutional investors. It damaged the country’s reputation on the global stage since our market is estimated moved by 50% in foreign funds.
Will the stock market crash affect the real-estate industry?
What we know now is that people will not go to see houses listed in the market. Either by choice or by force since that government implemented a mandatory hold for any social gatherings and this includes open houses and tours. As for sellers that have properties to sell, they do not want strangers walking into their place touching things which might contaminate their place. This calls for the disinfection of all properties that decide to stay on the market list during this time. And adjustment due to social distancing guidelines will adopt new solutions such as “virtual tours.”
As for the mortgage market, pricing pressure is expected due to the shortage. We know that the shortage in supplies for home builders already existed even before COVID-19.
Rents and property taxes demand to be lowered since most people are out of their job.
Experts say that at this point, a recession is guaranteed. What the government is trying to do is sustain the financial system and try to set it up for recovery immediately one the health crisis is resolved. The real-estate industry has to adjust and adapt to these new normals that this pandemic is causing in order to keep everyone safe from this virus and stock market crash.
Contact The Most Trusted Real Estate Agents in Metro Manila
Now that the country is facing a sudden change that caught us off guard. Presello understands your fear in investing and selling a property. That’s why we are more motivated to help and assist you now more than ever.
We don’t know how long this crisis will last but one thing is for sure, we are preparing for whatever this situation will give.
Our 15 years of experience in marketing, sales strategy, and real estate industry will not fail to give the most honest and competent service even in this difficult time. Presello’s story is one that aims to bring growth to our clients, we believe with our combined work ethic we can help empower home owners by giving them the best service when it comes to real estate.