How are we feeling? – The tricky question of current consumer sentiment

20 Jul 2020

We know…We’re as sick of talking about it as you are, but the reality is simply that COVID-19, around the country at least, hasn’t gone away quietly. With each state’s situation differing vastly, it’s certainly a challenge trying to gauge a general nationwide sentiment, especially in Real Estate. Even with WA soldiering on in what we like to believe is our impenetrable state hub, climbing numbers over East have shown that we may not be as invincible as first thought.

On 1st July, the ANZ-Property Council Survey for the September quarter showed 60% of businesses were expecting improvement over the coming quarter. However, this statistic has sadly become irrelevant for the most part, as the poll was announced at the start of Melbourne’s second outbreak, and before their lockdown was announced. It might be naïve to still look optimistically at this statistic in the wake of Victoria’s current situation; however, it still shows a positive attitude and willingness to hit the ground running as soon as people are able to.


As we’ve discussed here before, both the State and Federal building grant schemes have certainly done their jobs in terms of market stimulation. While the same ANZ-Property survey stated that 60% agrees it would have a positive impact on their business, it’s obviously the buyers and sellers who need to have the faith and come to the party. Thankfully here in Perth, as the last few years have been no picnic, we’re somehow able to honestly and accurately tell ourselves that it’s been worse, while sentiment has remained less affected than over East thanks to us being at the bottom of our cycle. Our land rush upon the announcement of the building grants has absorbed most of the supply keeping prices solid. Add that to our low case numbers, no community transmission, along all the usual stuff that makes Perth great, and you’ve suddenly got a market with a bit of promise!

Of course, it’s no secret that much of our survival is thanks to the top end of the market holding up, so there’s no doubt the average West Aussie is still enduring some tough times, and we wholeheartedly acknowledge that. Our recovery is obviously based on increasing transactions and climbing median prices, but our collective attitude beyond the statistics needs to remain positive if we want the numbers to climb. As we’ve said before, anyone lucky enough to count themselves in a secure financial position, should no doubt take advantage of the grants on offer if they wish to build, or the continued low prices if they’re looking to go established. After all, neither will last forever!

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