Investor confidence in residential sector drives $150m of land sales during lockdown
“We saw a big influx in the amount of enquiry for residential development land throughout the lockdown.
“Developers are essentially betting that the Covid effect will be short-lived, and will therefore continue putting sites into the development pipeline.
“Driving this sentiment is the well-founded assumption that we are about to see the return en masse of residential investors.
“With the ongoing low-interest rate environment, mum and dad investors simply aren’t getting enough returns from money in the bank. Some are also concerned about alternative investment classes, as the global economic uncertainty looks set to continue.
“At times of economic crisis, property is often considered a safe haven. Land is seen as particularly stable right now, as are houses. By contrast, commercial investors remain cautious about commercial tenant covenants and in some cases their ability to pay rent in the current environment.”
Josh Coburn, Site Sales Director at Colliers
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