The market is constantly changing in property be at by slats, property development, commercial property and retail property. The COVID-19 pandemic has been a major factor in the changing of the industry and the issues that it’s faced with many properties falling in price and having a tough time shall we say in the marketing process. However due to the Sam duty holiday and other government schemes including the help to buy scheme there are certainly positives in the market at the moment there seems to be a lot of activity of state agent selling properties at quite a rate. Particularly in the south-east we’ve seen many properties go on the market and get sold at a very favourable prices even post Covid prices which have increased in value. Typically you would expect the market to drop however we’ve seen certainly an increase in particularly high value homes which tend to be recession proof and have always favoured well in times of economic crisis.
We expect quite a bounceback in the market even though there may be a bit of a drop in the next year or two following the Coverd situation. We would expect a sharp rebound if of course the situation is resolved and people are fully out of lockdown with hopefully a vaccine on the horizon. It’s always a good time to consider selling a property when you’re at the height of the market and considering there may be slight drop in prices could be considered a good option to look at selling now waiting a year or so and re-entering the market at a lower price point.
When it comes to commercial property this is certainly going to be a very big shift in the market and we expect prices to really drop following over 19. We would say that the market for offices and also shops in retail will become a much less competitive market and therefore there will be bargains to be had however there will be certainly issues in this area and it could be a risky decision to enter it now or in the next couple of years. It may be a better idea to see how the market reacts and how they are retail industry bounces back following this. We’ve seen obviously a trend in online shopping and people working from home this one down slowly reduce the demand for offices and retail units.
Across the country be at the south-east the north or London there has been a decimation in the market of commercial real estate, this would likely continue for the next couple of years and we would recommend recommend to keep an eye on the market and the news surrounding it before making any financial or property related decision we always recommend to speak to market experts as well as solicitors and accountants before embarking on any property purchase of any size. The Matthew Cullum blog will seek to provide as much help and council as possible with regular market and updates and news stories in the area of property.
We would expect a sharp drop as we discussed but hopefully even sharper around however in today’s uncertain times with the pandemic it can be shortsighted to base a decision financial and property wise on this assumption. It may be a better idea to wait to see how things to react when we are eventually free of COVID-19 and out of lockdown and then as hopefully the market returns to normal you can start to make the decisions related to property purchase and building again of portfolios. But also the government and taxation issues should be closely watched as this can change sharply and could be to the detriment of property professionals.