Last week, Cyclone Alfred made its presence known, forcing the real estate market to take precautions. Many companies decided to cancel all open homes for the weekend to ensure the safety of potential buyers. As a result, scheduled auctions were pushed back to the monthly ‘In-room Auction’ event at The Calile Hotel on Saturday, March 15th.
Property managers found themselves on the front lines during this natural disaster. While the demise of Cyclone Alfred brought a collective sigh of relief, property managers still had to deal with managing leaks, wet carpets, and flood damage. However, the biggest lesson learned from this experience was the importance of insurance.
A battle ensued between lawyers and insurance companies regarding whether a buyer could assign liability of insurance to the seller before settlement. Insurance companies initially claimed that this was not possible, causing panic among buyers. In fact, the insurance industry even issued an embargo on policies leading up to the cyclone. However, Kelly Tatlow, the CEO of Ray White Concierge, came to the rescue by personally managing over 300 policies with Ray White insurance across the group.
Now that the water has evaporated and the storm has passed, many people are curious about the impact on property prices. Fortunately, the rain did not dampen the market significantly. At the first open house after the cyclone, a two-bedroom unit in Hamilton saw over 30 buyers lined up for an inspection, despite the rainy weather. This is a strong indication that the market remained resilient during the short break caused by Cyclone Alfred.
In conclusion, Cyclone Alfred may have caused disruptions in the real estate market, but it also provided valuable lessons. It highlighted the importance of taking precautions during natural disasters and the significance of insurance coverage. Despite the challenges, the market showed its resilience, with buyers still actively seeking properties even in the aftermath of the cyclone.
