As the country gets ready to stop JobKeeper and the coronavirus supplement to JobSeeker at the end of this month, people are voicing their nervous concerns about what impact this is going to have on both the economy and the property market on the Sunshine Coast.
We’re not nervous. Want to know why?
We are looking at the macro effect on a micro market and that effect is very little. A thriving, expanding and diverse economy is underpinned by many factors that would counter the macro pessimistic view touted about the end of JobKeeper and JobSeeker on the Sunshine Coast.
Rather than listening to broad statements thrown around by so-called experts, and instead choosing to look at this situation through a different lens, you can recognise that the end of JobKeeper and the coronavirus supplement to JobSeeker is undeniably a positive thing.
It is a positive sign that our country’s economy and our management of the health impacts of the virus are at a point where we no longer have to rely on government payments and are able to return to a new sense of normal when it comes to business.
What a lot of people haven’t considered when discussing or worrying about these changes, is that there has been a wind down in payments and qualifying factors since September 2020. This is not a sharp drop as some seem to believe.
Sure, there will be negatives in certain markets and industries but that won’t have a dramatic effect on the whole of the Sunshine Coast because even in the midst of COVID-19, our region continued to expand with unprecedented infrastructure, investment and job creation. Plus we also have to face the fact that a percentage of businesses will always struggle regardless of a pandemic and whether they get this funding or not.
The upcoming changes to these payments should get Australia back to the right balance and see a realignment of business.
We see a great number of business and people looking forward to the end of these support packages so we can welcome a more balanced and secure business and employment environment. Many businesses are struggling to find quality staff with people fearful to move as a result of JobKeeper or those choosing to simply live off JobSeeker payments. Having more people back out in the workforce and willing to be more mobile will benefit those business in need of staff and may very well see great opportunity spring up for many businesses and individuals.
When it comes to the property market, we once again see very little impact from these payment changes. Those who were seriously looking to buy were most likely not on either JobKeeper or JobSeeker payments (bank funding has been very difficult to obtain for anyone who was), and if there are more people who need to sell as a result of no longer receiving these payments, well they are selling in a hot market. Regardless of COVID19 and regardless of the government incentives, the Sunshine Coast was already on track to be the top real estate region in the country with the incredible demand outstripping supply already predicted. But lets be real here, the pending collapse in income and subsequently real estate prices that some have been preaching doesn’t take into account the many, many other factors underpinning the Australian property market – but that is something we will get into the detail for another day.
For now we welcome the return to balance, the return to a new kind of normal and the continuation of the growth of the Sunshine Coast economy and property market.
We always encourage people to question broad statements and opinions of so-called experts and we are available to help you unpack the mixed messages in the media and provide you with solid advice backed by data.