further impact and disruption from the outbreak. This note provides a summary of notable measures undertaken and implications for real estate in the region.
Will the price of multi-unit property drop due to the corona virus since people will prefer to rent a single family house?
“Will the price of multi-unit property drop due to the coronavirus since people will prefer to rent a single-family house?”
Not unless we start reading about cases of rapid viral spread in MDU’s which is unlikely given we don’t even see that with the flu or common cold.
As was already pointed out by another, any negative effect on the real estate market will be due to the economic impact caused by the coronavirus. If we enter into a global recession which is starting to appear more and more likely, then people will be in fear of employment loss or will have already experienced it and housing demand (purchasing) will drop and so will prices.
If shit gets bad and prices start dropping below market value we may see a repeat of the last housing crisis as it has once again been possible to get loans with less than 5% down for a few years now. In ridiculously overpriced places like California, it will be a rapid price descent once it begins.
If that happens you can expect the price of MDU rentals to increase as people lose their homes to foreclosure. Renting will be their only option for at least 2 years after a foreclosure.
If you think it can’t happen, think again. Just open your eyes and look around! People are avoiding crowds! Restaurants, especially in Asian areas are seeing a decline in business upwards of 70%, mall traffic is down significantly, movie theaters and theme parks are hurting. Tourist dependent areas are getting hammered. Many retail businesses are hurting as people move to online shopping. More a significant number are already worrying about making their rent and have had to start laying off employees as you just can’t keep people on the payroll if the money isn’t coming in.