The year 2020! What a roller coaster ride it was for businesses worldwide. While the year started on a positive note with all plans and dreams, the pandemic shattered them in one go. In a matter of weeks, people were unable to socialise and work as they used to. Instead of spending, people were tightening their purses and saving as much as they could.
But, did it end? One year later, the new waves of the pandemic still surface in the air. Irrespective of vaccines and social distancing measures, case numbers are rising again in some parts of the world. Whereas other countries have seen massive surges, and they are dealing with the consequences. Not only that, there have been numerous economic problems such as inflation, capacity constraints, and supply-chain disruptions for various industries and sectors.
How has the pandemic affected the real estate sector?
Source: https://www.oecd.org/coronavirus/policy-responses/housing-amid-covid-19-policy-responses-and-challenges-cfdc08a8/
From halted construction activities to lack of skilled labour, the 2020 and 2021 crisis has changed consumers’ perception of buying real estate. Social distancing has impacted the way people interact with physical space and has reduced the demand. Overall, the pandemic has resulted in negligible home buyer enquiries.
As per the Australian Bureau of Statistics (ABS) and the Australian Stock Exchange (ASX), the total value of Australia’s residential property has tripled than that of publicly listed securities. To help the situation, the government has taken specific measures, but the banks have paused mortgage repayments, landlords have deferred rents, and there’s a moratorium on evictions.
Challenges that builders are facing during these tough times.
- Lack of demand due to increase in house prices
Based on the research from Ipsos Issues Monitor, where they sample Australians to find the issues affecting the state, it concludes that housing is of equal concern to people compared to health. CoreLogic figures show that the housing prices in Sydney increased by 3.5 per cent last month, leading to a median house price of $1.186 million.
At the start of 2020, house prices were going to enter a cyclical upswing, but the onset of the pandemic disrupted this structure, with the house prices contracting in all capital cities. The government policy responses helped manage the situation. However, the material decline in mortgage interest rates led to a dramatic rise in housing prices over six to nine months. As a result, housing affordability has become a bigger worry for people than the pandemic, thereby affecting the overall demand for buying new houses.
- Uncertainty and volatility affecting the buying behaviour
Just a few months back, slow vaccine rollout and interstate border closures left Australia vulnerable to covid outbreaks. The outcome was that consumer sentiment changed greatly across various industries and sectors. Especially in the real estate sector, builders experienced major shifts in buying patterns. People want to spend only on essentials while cutting back on expensive purchases.
Beyond the current challenge, the longer this pandemic continues, the real estate sector will need to be prepared to sustain the adverse effects. Builders need to make smarter decisions to respond to the threat of this crisis. They need to invest in futuristic technologies and innovations like smart home automation to overcome their challenges and improve sales.
3 Ways how smart home automation can help builders during tough times
- Boost your property value with smart home automation.
Did you know that 80% of home buyers prefer a house that includes smart technology? This is because home buyers want future-ready homes that offer safety, luxury, convenience and a unique interactive experience.
With cutting edge technology, smart home automation can take any home to the next level. Moreover, it can provide cost savings from energy efficiency, which becomes another critical factor influencing home buyers. The development of IoT devices increases connectivity, which helps them run homes more efficiently. This modern and innovative experience boosts property value for builders, which allows them to stay ahead of the competition. Check out our blog on tips to increase your property value with smart home automation.
- Easy sales and Return on investment
Did you know that 2.3 million Australian homes have smart home technology, with the average revenue per installed household now at US$169.08? These statistics tell that the future of smart home building is very bright for builders. Smart home devices like smart locks, smart thermostats, smart lights and many more are not just a requirement for home buyers, but they are necessary when they decide to purchase.
As builders, if you plan and make investments in smart home technology, it will help efficiently increase your homes’ overall appeal. It enhances your buyer satisfaction, providing a better ROI with increased revenue growth and shorter sales cycles.
- Enhance the constructed homes for a futuristic experience
Did you know that the number of households in Australia to implement Internet of Things (IoT) systems is expected to rise to 1.6 million by 2021?
With SMART experience, builders can provide a unique, futuristic experience to their buyers. The flexibility of managing home devices from one place, cost-effectiveness, peace of mind and comfort- the benefits are endless. Smart homes can do all of this and substantially more, enriching the lives of home buyers.
With COVID in the picture and people staying more time at home, the enquiries for smart home solutions and voice control innovations have accelerated further. There’s no doubt that smart home technologies like indoor regulators, entryway bolts, automated garage doors and many more attract buyers without adding any business cost for builders. So, it’s time to adopt futuristic technologies and sell better with smart homes.
Have more questions? Do you want to explore options for your project? No matter the stage it is in, as a smart home automation expert, we can help you gear it up to meet the market demands.
We can help you showcase a display home that’s future-ready, with best-in-class technology while being cost & energy-efficient for your buyer. We aid builders like you in introducing buyers to a future home that’s smart, interactive and uniquely personal. Let’s capitalise on that display home, shall we?
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