When the COVID-19 pandemic first washed across Australia one of the immediate economic fears was for the property market, particularly in regional areas like Coffs Harbour on the New South Wales North Coast.
Now, months into the pandemic, figures show the number of properties available to rent are at the lowest levels since August 2019 and agents are reporting a robust sales market.
"COVID really hasn't really scared anybody off at all," said Coffs Harbour real estate agent Emily McIlwraith.
"We've had up to 20 people come along [to open homes], so it hasn't really affected anything.
"If any it's actually grown slightly."
Rental properties hard to find
According to the Real Estate Institute of NSW (REINSW), rental vacancies in Coffs Harbour fell to 2.4 per cent in June, down from 3 per cent in May.
The rate is the lowest the city has recorded since August 2019.
Coffs Harbour agent Martin Wells suggested there were a number of reasons for the change.
"Some people are more reluctant to purchase a home at the moment that might be in a position to do so, and they're happy to rent for a little while and just to sit out the market and and see what's happening," he said.
"We're also actually getting a lot more people moving into the area, particularly from from southern capitals."
At the same time Coffs Harbour renters have been struggling to find homes, the Sydney vacancy rate blew out to 4.5 per cent in June, up 0.4 per cent from May and 1.5 per cent since March.
Land in demand
The Federal Government's HomeBuilder program has seen demand for land increase, according to Ms McIlwraith.
"We've almost sold every single block that we had," she said.
The HomeBuilder scheme allows eligible home owners to apply for a tax-free grant of $25,000 if they are spending between $150,000 and $750,000 renovating a home or building a new home.
"The amount of inquiry has tripled since the Government released the new homes scheme," Ms McIlwraith said.
"Because, for first-time buyers especially, it's up to $40,000 in government grants [when combined with state relief]."
Affordability an issue
Increasing rentals and strong demand for homes will do nothing to ease housing affordability during an economically unstable time.
"I guess anyone looking for affordability in that bottom end of the rental market might be finding it tough to find those properties at the moment," Mr Wells said.
"I think that's a knock-on effect from the lack of stock across the board where we haven't got great investor properties coming into the market.
"Then you've got less investors purchasing property and therefore less stock about all for for rentals."
Mr Wells said a healthy market in both sales and rentals was a "double-edged sword".
"It's great for the property owners that have worked hard and done well and own investment properties," he said.
"And tough for those that are trying to find affordable housing and secure place over their head for their family."
