Christopher ZeniosEven though the rate of infection has decreased due to quarantined zones, the death toll has exceeded 1,100 causing some panic in overseas property markets. These markets are feeling the effects of the deadly coronavirus in China with interest and inquiries from mainland investors slowing noticeably.
Real estate agencies around the world have temporarily shut down their offices due to the spread of the virus. Markets in the region have felt more than just the pinch of the outbreak.
Executive Vice President for Leading Real Estate Companies of the World, Chris Dietz, expressed:
The prolonging of the virus outbreak crisis into February has shaken up the Thai real estate market [as] Chinese buyers [are] the target group for property developers.
China Real Estate Association members have suspended business in the mainland to prevent further human to human spread of the virus, which has made it very hard for investors to buy property overseas.
Investors have postponed viewings, frozen plans to purchase properties as most cities are on lockdown and many countries have issued travel bans until the pandemic is contained or neutralized.
Latest studies confirm that the number of confirmed cases of Covid-19 surpassed 41,000 and taking 1,100 lives in China. The U.S., Australia and Thailand are some of the world’s few markets that rely on investors from Chinese luxury property buyers to boost their real estate sector.
Chris Dietz continues:
In the short term, buyers have less incentive to purchase if it’s unclear when they’ll get to visit the property. In the long-term, the virus could temporarily weaken sales if these problems amplify and travel restrictions and quarantines expand into other countries and regions.
Not only investors have been looking for a “safer” location to invest in, but agencies have also noticed fewer clients travelling due to the virus outbreak. This has resulted in less physical viewings and more digital viewings via video links.
According to Nicholas Vaughan, partner at Withers law firm, the impact of the Covid-19 still yet to be digested, he states:
It is still too early to say whether the coronavirus will have an impact on Chinese demand for London property.
We only hope that a cure is found before any more lives are taken by the virus and that investors begin investing again. Scientists are working around the clock to find a solution to the deadly coronavirus.
