Wage subsidy to ‘relieve financial pressure’ for tenants and landlords

Commenting on the move, PIPA chairman Peter Koulizos said the wage subsidy would “go a long way towards solving tenant and landlord issues during the coronavirus crisis”.

“This policy has prompted a collective sigh of relief of sorts from tenants and landlords as well as everyone employed in the real estate sector nationwide,” Mr Koulizos said.

“The payment will hopefully mean that there doesn’t have to be a philosophical debate over whether tenants or landlords are more worthy of financial support during these difficult times.”

Mr Koulizos noted that prior to the announcement, many property investors had been worried about covering mortgage repayments if their tenants could no longer afford to pay the rent.

“Landlords want to maintain a healthy relationship with tenants but are generally not in the financial position to cover mortgage repayments for months on end,” Mr Koulizos said.

“The subsidy provides much-needed support for businesses and employees significantly financially impacted by the pandemic, which will ultimately see more people keep the roofs over their heads.”

Looking ahead

Mr Koulizos said that while it was impossible to forecast the impact of the COVID-19 pandemic on the real estate market, some of the changes the market has seen are not as “severe as they at first seemed”.

“The banning of traditional open homes and auctions was not unexpected and, thankfully, technological advances may mean this is less disruptive to the real estate industry than it at first appeared,” Mr Koulizos said.

“Buyer’s agents and property investment professionals actually have much to offer buyers in these turbulent times with the additional security they provide via their agent networks, negotiation skills as well as vast experience.”

In conclusion, Mr Koulizos said: “At the end of the day, we are in the business of providing shelter for our population and that will never change.”