How will COVID-10 pandemic impact Alice Springs property market: HTW residential

How will COVID-10 pandemic impact Alice Springs property market: HTW residential
How will COVID-10 pandemic impact Alice Springs property market: HTW residential

In the lead up to the Northern Territory government election in August this year, there has been a major focus on the current situation regarding crime in Central Australia, with many locals believing it has worsened over recent months, according to a recent Herron Todd White (HTW) residential report. 

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

"It seems to be the hottest topic of conversation around town and on local social media platforms, apart from COVID-19 of course. People are asking the question regarding what impact (if any) this increase in crime might have on property values," the valuation firm said. 

Whilst there is anecdotal evidence of people leaving town because they have had enough of the increasing crime and other social issues, it has not become apparent yet that it has impacted on the property market. That is not to say it might be the cause of a downturn in the coming months.

The other factor looming large as a real threat to the health of the local economy (no pun intended) is of course COVID-19. At the time of writing there is uncertainty about exactly how big the impact will be from this crisis, the report noted. 

Central Australia has long relied on the tourism industry as a major employer and revenue generator. With travel restrictions imposed already and the likelihood of more stringent restrictions to come, the immediate future of the tourism industry does not look bright. These restrictions could not come at a worse time, leading into winter, which is peak tourist season.

"The longer term impacts of these events is difficult to forecast, however with a market that is already in a fragile state, it could prompt a downturn in values as people sell up and leave town or are forced into selling due to financial circumstances," the valuation firm said. 

"With no significant capital growth being experienced in recent years, a sudden influx of properties being listed for sale is likely to create an over-supply.

"The coming months leading up to August 2020 and beyond have the potential to shape the residential market in Alice Springs for years to come." 

A recent sale in the Alice Springs region is a four bedroom in Gillen. 

The 16 Underdown Street family home (pictured below) which includes a granny flat was sold for $425,000. 

The home features open plan living and dining, games room, alfresco courtyard area and double carport. 

How will COVID-10 pandemic impact Alice Springs property market: HTW residential

 

A current listing is a three bedroom house in Larapinta priced at $329,000.

The 9 Saltwell Street home (pictured below) features open plan kitchen and dining, outdoor veranda and carpeted bedrooms.

It also features kitchen with gas cooking, separate toilet and garden space. 

How will COVID-10 pandemic impact Alice Springs property market: HTW residential

Note regards COVID-19
This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.
This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.
Tags: 
Htw Alice Springs

Comments

Be the first one to comment on this article
What would you like to say about this project?