The government did not consider the real estate sector as an essential service
The Bayleys Realty Group expects commercial real estate sales to slow after the government had ordered a Covid-19 Alert Level 4 lockdown last week, preventing agents from physically showing properties to potential buyers.
Ryan Johnson, national director for commercial at Bayleys, said the lockdown was black and white. Therefore, only the services and establishments deemed essential would continue their operations.
“Inspections were face to face, so naturally, they are not going to happen. People are unsure as to what the next steps are. There's a lot of talking and planning happening now,” Johnson said. “[Sales are] going to slow down considerably for four to eight weeks. That will be the case for the entire market.”
He revealed that some properties’ prices had already plummeted as the pandemic got worse, with some tenants seeking rent relief or three-month insolvency.
“You've got an awful lot of change happening in the market even though we are locked down for four to six weeks,” Johnson said.
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Todd Lachlan, managing director of JLL, confirmed that they are committed to complying with the lockdown despite its impact on the company.
“Lockdown means lockdown. There's no way we will be doing any inspections,” Lachlan said – adding that they had deferred marketing campaigns and inspections.
