Activity in the apartment market is currently seeing a traffic jam of enquiry backing up as transactions slow, but advertising, listings and conversations with would-be purchasers continue.
The inability to view property in person, and necessary additions of COVID-19 conditions in contracts is simply causing a backlog. Whenever there is a significant change to the Auckland Central market, our team get on the phone and push out additional marketing to purchasers to gauge sentiment and confidence so we, and our vendors can make objectively informed decisions. As expected, those who were already sitting on the fence prior to the pandemic headlines have left, but the rest, confidence remains strong (many optimistic). We had conversations with those who were on the doorstep of purchasing, expressing frustration that they might be renovating, moving, or tenanting property in the winter months, however that is still their plan and property is where they are inclined to protect themselves and prepare for the future.
After speaking with other high volume city agents, it appeared that this level of purchaser confidence was the case across the board. It was then confirmed in an update from Realestate.co.nz with the news that audience viewing on advertised listings is on average 8.6 pages per session (up 37%) and interested parties are spending 8:12 minutes on-site (up 39%).
In light of this, we decided to bring one of our new listings on, during the lockdown. The Trademe.co.nz listing viewing numbers, compared to campaigns prior to the lockdown are up 40% as are the numbers of people adding the listing onto their ‘watch list’. So far we have three groups that have registered their interest to purchase, alongside healthy general enquiry which will lead to excellent private viewing numbers post lockdown.
There is a long road ahead, but if these signals are anything to go by, for the moment the situation does not look as bad as some would have you believe. In saying that, we will see how much pressure is released, when the tap opens and we will be tracking and extracting as much information and data as possible, to protect our clients assets and empower their decision making.