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Opinion: How Covid-19 will affect the housing and property market

Property market

Liam Hargaden, Jordan Auctioneers

Reporter:

Liam Hargaden, Jordan Auctioneers

Opinion: How Covid-19 will affect the housing and property market

Through our lifetime we have not seen anything that would compare to what is transpiring with Covid-19. This worldwide pandemic has seen about 57% of the world on lockdown to combat the spreading of this virus.

We see numerous European countries easing restrictions to try and get economies back to work, exercise and living.

We at Jordan Auctioneers have received many calls from people both buying and selling properties seeking our thoughts on the property market following the restrictions on lockdown being lifted.

In the short term, as per the Roadmap to Reopening Society and Business, the easing of restrictions will be done on a phased basis with certain industries and offices being allowed back to work but still adhering to social distancing, washing of hands and associated precautions to limit a further spread of the virus. I would imagine any mass gatherings or larger social events are likely to see the restrictions extended for a further period.

There are certain sectors of the economy that will bounce back quicker than others. When pubs and restaurants open up again I think the majority of Irish people will be delighted to get out after being house bound for in excess of two months but some restrictions or capacity and distancing will remain in place. The hospitality sector will see a decline from foreign tourists but are likely to gain significantly from staycation with many Irish people choosing not to take foreign holidays to the usual sun destinations but rather to holiday at home.

If you were to look at the property market only a couple of months ago, all the ingredients were very positive — banks were lending money, the Irish economy was in a good position and outperforming many other European countries, the property market was in a good place with a good steady market and demand for properties, unemployment was at an all time low below 5% and there was a good feelgood factor in general.

It is possible we may see some negative sentiment and uncertainty in the market in the short term while we try to deal with these Covid-19 restrictions.

Certainly, I would be optimistic of a bounce back if you were to look at the positive attributes outlined above.

Hopefully many of the employees who have been made part-time or redundant will be back into the work place once their offices, industries or sectors are back in full operation.

Unfortunately there is likely to be some casualties, but as we have seen from the recessionary times between 2008 and 2014 we are a great nation at dusting ourselves off and getting on with what needs to be done.

So what we need to do now is what Irish people do best, get back up and going again once restriction are lifted.

Liam Hargaden, Jordan Auctioneers, can be contacted at 045 433550 or 086 2569750 or email: liam@jordancs.ie.