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The stability of Aussie home prices is set to be tested from coast to coast, due to the dramatic slump in our population growth.

With immigration effectively paused due to the COVID-19 epidemic, Australia’s national housing body has predicted a fall in demand by as much as 77,000 homes per year for the next three years.

According to new research released from the National Housing Finance and Investment Corporation (NHFIC), the pandemic could hit housing demand to the tune of between 129,000 and 232,000 dwellings over the next three years.

The fall in population growth could hurt real estate.

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Such a scenario could place significant pressure on home values, which so far have showed remarkable resilience despite the economic challenges of the pandemic.

The above figure could represent more than 10 per cent of housing transactions, with the Reserve Bank of Australia asserting around half a million home are transacted on each year.

According to the NHFIC, the worst case scenario would be “a reduction in the population increase – from peak to trough – of 214,000 from 2019 to 2021”.

“This implies a decline of 0.8 per cent of the population over the two-year period, which has only been surpassed by World War I and the unwinding of the peak of the baby boom in 1971.”

Net overseas migration has contributed almost 60 per cent of population growth since 2007.

Such a fall could also have a domino effect on rent prices and the construction industry. It would also inhibit the rebound of the economy from the pandemic enforced recession.

“Large falls in underlying dwelling demand are already putting upward pressure on vacancy rates and downward pressure on rents, particularly in some inner-city areas,” the report reads.

“If sustained, this could cause a contraction in construction activity that would add to the recessionary forces impacting the economy.”

Melbourne’s controversial lockdown has resulted in the most sluggish real estate market in Australia. Picture: Getty

Rising unemployment could also be a factor

“The past two recessions show that rising unemployment tends to lead a decline in natural population growth, the report continued.

“Australia’s second wave of infections is likely to further slow population growth, adding to the depth of the downturn and hindering the pace of recovery in underlying housing demand.”

Due to the different stages of lockdown each state is experiencing and how effective or otherwise state governments have been in dealing with the virus, Australia’s real estate market has splintered in a manner rarely witnessed before. And that could continue.

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“This research highlights the strong relationship between population growth, increasingly through net overseas migration, and underlying dwelling demand with the outlook for population growth due to COVID-19 highly uncertain,” NHFIC CEO Nathan Dal Bon said.

Home value resilience to be tested

All things considered Australia’s home values have shown great resilience since mid-March when COVID-19 hit and lockdowns were first enforced. Over that time, Melbourne dwelling values have been the worst hit, falling 4.6 per cent. However, annually they are up 5.9 per cent and property experts understandably argue the recent price recorded are not as accurate as they might be, due to the lack of sales.

The construction industry could be hit hard by the fall in population growth.

It is this lack of stock which has also helped to prevent a free-fall in prices.

With the likelihood the Morrison Government will announce further homebuying incentives in next month’s Federal Budget, First National Real Estate CEO Ray Ellis points to the importance of new home construction as representing around seven to eight per cent of Australia’s GDP.

“We still expect strong growth in property prices next year. But the pace is the issue without population growth,” he said.

The volatility of the stock market this year and record low interest rates, means property has become as great a safe haven as it ever has been and lack of consumer confidence could also mean Australians continue to hold onto their homes for longer.

Melbourne could be the most vulnerable

In recent years, Melbourne has overtaken Sydney as the location most immigrants choose to live, as such is it is likely its real estate market could be the most vulnerable due to the drop in net migration.

Bruce Warburton, head of sales at Brad Teal, who specialise in the some of the outer areas of Melbourne, such as Sunbury, where many new migrants choose to call home, believes the lack of demand there could lead to a ripple effect into the inner city.

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“The housing market has held up well so far despite the incredible challenges,” he said.

“A lot of people who sell up in places like Sunbury are moving to inner city Melbourne for the lifestyle and for schools. They are don’t want to commute so far and are willing to sacrifice a modern home for something older provided they are closer to the city.

“That option might be out the window for some now if that demand from immigration isn’t there. It’s something the government needs to think about when they are planning for the medium and long term.”

The post Slump in Australia’s population growth set to test resilience of home prices appeared first on realestate.com.au.

84 Rae Avenue, Edithvale was one of only a handful of Melbourne homes to sell via online auction last week.

Deals are still being done in Melbourne’s locked-down market, but only a handful of buyers are willing to “take the punt” of purchasing homes sight-unseen.

Just 11 homes went under the hammer in Melbourne last week, according to CoreLogic — down dramatically from 1020 auctions on the same weekend last year.

Seven of them were reported as sold, including that of an Edithvale property that soared $63,500 above reserve at an online auction on Saturday.

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A developer plans to 84 Rae Avenue after winning its online auction.

The Edithvale property near the beach fetched $963,500.

A developer outbid three homebuyers to win the 697sq m landholding just blocks from the beach — which came with plans and permits for two townhouses — for $963,500.

Ray White Carnegie’s Tom Grieve, who ran the auction from his garage, said 84 Rae Avenue sold without any of the bidders setting foot in it. A virtual 3D tour and photos were the only options due to a citywide ban on physical homes inspections being extended t
o at least October 26.

“We put it on the internet at the start of September, hoping we’d get released from (stage four lockdown) on September 14 — in hindsight, that was somewhat optimistic,” he said.

“But we figured, it’s a house, it’s got plans and permits, it’s going to attract interest without inspections. So let’s just leave it there and do the auction.”

Mr Grieve said the vendor also supplied a building inspection to the potential buyers, for a fee, to put their minds at ease.

It turned out an inspection wasn’t too important to the buyer — he planned to demolish the dated three-bedroom house the 70-something vendor had called home for 25 years, and replace it with townhouses.

But Mr Grieve said for most buyers, it was a crucial element of the selling process. He said he had “more than 20 individual buyer inspections booked” across three to four properties for the day physical inspections were due to resume.

“That whole first week back, I’m completely booked,” he said.

Victoria’s peak real estate body is campaigning for one-on-one home inspections to be allowed to resume as part of the next step on the government’s road map to reopening, due to begin from September 28.

The quirky 129 Dorset Road, Croydon attracted eight offers before its sale.

The 1980s build fetched $732,000.

Meanwhile, a Croydon house buyers were lining up to inspect sold before any of them got the chance.

The retro house at 129 Dorset Road sold sight-unseen for $732,000 — above the $660,000-$715,000 quoted range — after Hocking Stuart Ringwood selling agent Travis Milton received a whopping eight offers.

“I had more people interested, but they said they needed to see it in person,” Mr Milton said.

“While it was sensational to get a sale done, there was always going to be that portion of the market who wouldn’t (buy sight-unseen).”

The sale to first-home buyers from the Maroondah area came after the property racked up more than 20,000 views on realestate.com.au, with the 1986 build’s price point and striking design by architect Hank Romyn the major drawcards.

Buyers from Clifton Hill snapped up 22 Coburn Avenue, McCrae without setting foot in it.

22 Coburn Avenue was just 300m from the beach and 18 months old.

Clifton Hill-based buyers also snapped up a contemporary McCrae house without viewing it in person, for an undisclosed sum understood to have surpassed $1.7m.

Belle Rosebud-Dromana director Grant McConnell said the purchasers didn’t have the luxury of waiting until inspections resumed in a month’s time, as they’d already sold their own home.

“That’s where you feel sorry for people, when they’ve sold and they can’t buy anything unless they want to take the punt,” he said.

He said the buyers viewed the 22 Coburn Avenue home — which was only 300m from the beach and 18 months old — via a video walk-through filmed before stage four restrictions kicked in.

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samantha.landy@news.com.au

The post Melbourne lockdown: Buyers ‘take the punt’ in sight-unseen home sales appeared first on realestate.com.au.

Atlassian’s Scott Farquhar has quietly pulled the $37 million renovation plans on Elaine. (AAP Image/Dan Himbrechts)

Atlassian billionaire Scott Farquhar has quietly pulled the $37 million renovation plans he’d unveiled with fanfare earlier this year for his Double Bay trophy estate, Elaine.

Farquhar and wife investment banker, Kim Jackson had local ­architects pitch for the design project, but went with a striking three storey concept with a translucent curved facade from Lazzarini Pickering Architetti, a Rome-based practice headed by expatriate ­architect Carl Pickering.

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The grand mansion Elaine. AFP PHOTO / PETER PARKS

While they await the new plans, approvals, and an estimated two-year build, Farquhar and Jackson, who heads Skip Capital, are holed up in their $16.25 million Bellevue Hill in-between acquisition.

It was three years ago that they paid $71 million to John B. Fairfax for the estate on Seven Shillings Beach, with the deal now ranked as Sydney’s third most expensive.

Their plans were released to media prior to their lodgement at Woollahra Council, which adjoins Elaine on its southern side via its Blackburn Gardens. The application didn’t even progress to the formal advertising in the Wentworth Courier for objections from the public, before it was pulled.

The cancelled plans look very different to this. AFP PHOTO / PETER PARKS

But when the revised proposal does lob, Farquhar will likely have taken steps to have run it past all the interested neighbours. The other key party being his business partner, Mike Cannon-Brookes who spent $100 million next door on Fairwater in 2018 with his wife, Annie.

The Sell envisages the very edgy proposal for a rooftop tennis court will have been ruled out.

There’s always returfing the ­existing lawn court on the 7000sqm estate.

Atlassian’s Scott Farquhar and Mike Cannon-Brookes (AAP Image/Dan Himbrechts)

There are only a dozen or so harbourfronts elsewhere in the east that come with a court, starting with the Paspaley family in Elizabeth Bay through to the Boyer family at Watsons Bay.

They include Edgewater, the Wolseley Rd, Point Piper sold earlier this month for a repu­ted $95 million by the founders of the Katies retail clothing chain Joe Brender and the late Sam Moss.

The post Atlassian billionaire Scott Farquhar withdraws $37m plans for Double Bay mansion Elaine appeared first on realestate.com.au.

The former convent in Balmain that’s now luxury housing.

A Victorian-era building once used by nuns has been transformed into one of the inner west’s most extravagant homes – with a price tag to match.

The eight-bedroom house, one of three homes converted from the former Convent of the Immaculate Conception in Balmain, was listed for sale this week with $12m hopes.

It includes four levels of living space serviced by a private lift, along with a home gym, 600-bottle wine cellar and plush Italian marble finishes.

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The gothic-revival building on Jane St was constructed in 1876 and original housed 10 Sisters of the Good Samaritan and 30 boarders.

It is listed with a $12m guide.

The home is spread across four levels.

An additional wing was added in the 1890s, which was sold off privately and converted into the three houses in the 2000s.

The house at 14C Jane St underwent another renovation in more recent years and is now listed with BresicWhitney agents Adrian Oddi and Shannan Whitney.

Mr Oddi said the home had already attracted interest from overseas buyers despite only just hitting the market.

“The owners have given it a complete overhaul … the buyer pool for this property will stretch well out of Balmain,” he said.

The convent pictured in 2006 prior to the overhaul.

The convent was built in 1876 and a wing was added in the 1890s.

The home includes 702sqm of internal space and abounds with natural light. There are views across the city that take in the Harbour Bridge, CBD skyline and Anzac Bridge.

There are four levels but some ceilings are still 8m high. Finer details include kauri floorboards and Australian cedar doors.

Depending on the configuration, there are at least seven bathrooms, along with a mix of home offices and a multitude of bedroom configurations.

The property is listed on the NSW State Heritage Register and with the Inner West Council as an item of high local significance.

The interior prior to the renovation.

The luxury finishes seen in 2020.

It is one of the most notable examples of gothic-revival architecture in the area.

An old newspaper report from the 1890s described the convent as occupying “one of the most picturesque and lovely sights around Sydney, its grand ‘hall’ is without rival and elegance in any of the scholastic institutions of the city.”

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Designed by architect Edmund Blake, the structure is five bricks thick at ground level, moving to triple brick for the upper floors.

It has council approval for a swimming pool, as well as potential for four-car garaging, according to information provided by BresicWhitney.

The post Gothic convent built in 1876 turned into incredible Sydney mansion appeared first on realestate.com.au.

OPINION

Banning physical inspections of homes for renters and buyers is not a proportionate response to the public health risk, writes REA Group CEO Owen Wilson.

Physical property inspections in Melbourne must be reinstated.

Buying, selling and renting property during this health crisis is not a discretionary activity — shelter is an absolute necessity.

Banning physical inspections until October 26 does not appear to be a proportionate response to the public health risks.

Melbourne’s property market has effectively been placed on hold. Picture: Getty

I should make it clear the real estate industry remains committed to ensuring we play an ongoing role in preventing the spread of COVID-19. Real estate agents proved during initial restrictions their ability to adapt to new ways of operating. Precautions were quickly implemented during private inspections, such as adhering to social distancing, sanitisation practices, contact tracing and implementation of COVID-safe workplace protocols.

The inconsistency in the stage four restrictions defies logic and needs to be corrected. Like other professionals and tradespeople who provide important services to the community, real estate agents should be trusted to operate safely in this environment.

The government’s road map is confusing and inconsistent when you consider it is possible to have meetings on building sites with five people, yet a single person can’t inspect a property.

The Victorian government’s roadmap has been confusing and inconsistent when it comes to the real estate industry. Picture: Getty

The ban is having a profound impact on Victoria’s economy and access to safe, secure housing. The flow-on effects include significant social and financial hardship in our local communities.

Over recent weeks we have seen many examples of Melbourne’s extended real estate lockdown leaving buyers, sellers and homeowners in limbo, with many in desperate financial situations.

Some people have sold houses in recent months because of job losses and need to find a place to rent. Others are midway through buying and selling and have had to secure bridging finance, costing much more every week. This adds enormous stress to the process.

In the coming weeks, many Victorians who have deferred their mortgage repayments will be asked to resume payments. Some will need to downsize or perhaps even leave the property market. They cannot do this if the market is unable to operate effectively.

The real estate industry is committed to finding the right balance between the challenges of the health crisis while ensuring the right measures are in place for a functioning real estate sector.

Finally, we remain confident that once restrictions ease, the property market can recover. Let’s allow this essential market to open up again so our economy and communities can return to some form of normality.

This article originally appeared in The Herald Sun. 

The post Real estate restrictions make no sense, inspections must be allowed appeared first on realestate.com.au.

Tarkine Wilderness Lodge at Meunna, the impressive exterior of the lodge

MORE commercial and tourism opportunities are opening up in Tasmania’s north west with an iconic fish and chip business on the Wynyard wharf up for grabs along with a wilderness retreat in the Tarkine.

The asking price for the Tarkine Wilderness Lodge, at Meunna, about 35 minutes from Burnie, has been reduced from $2 million to $1.5 million.

The lodge comes with a licence to conduct wilderness walks in the Tarkine forest and a previous development application has been lodge to build 25 cabins on the 44,68ha property.

Currently the lodge operates as a bed and breakfast with three private ensuite rooms.

Tarkine Wilderness Lodge at Meunna

Tarkine Wilderness Lodge at Meunna

Another well-known tourism offering has also hit the market.

The building at 243 Gilbert St, Latrobe has been offering as The Cherry Shed for many years and drawn in visitors keen on cherry ice cream and other cherry treats.

It is on the market for $1.1 million and has a commercial kitchen, meeting rooms and dining area and ample parking.

The Cherry Shed, Latrobe, sales assistant Selka Beyerle pictured in 2009.

One of Ulverstone’s most iconic buildings, Lancaster House, has been a part of the town’s main street built heritage since the 1920s.

Overlooking the Leven River and a redeveloped wharf area, it is on the market for $1.25 million having been a coffee shop and department store in previous years.

Lancaster House at Ulverstone

It has three residential areas on the first floor above the commercial tenancies.

Wynyard Seafood, which has been a part of Wynyard’s wharf culture for decades, is for sale with price available on application.

The advertisement says the retail lease allows for significant expansion of the building.

Across the road, a grand 1890s building, which has had previous lives as a book store and a restaurant is looking for a new owner and new life again.

The building, in Goldie St, is on the market for $649,000, zoned commercial/residential and very close to the town’s new indoor market.

Two buildings in Devonport’s Rooke St mall are also for sale, one built in the 1880s which has enjoyed many years of consistent earnings.

helen.kempton@news.com.au

The post Want to run a fish and chip institution or a wilderness lodge? appeared first on realestate.com.au.

The property market has performed well during the COVID-19 crisis. Picture: Sunday Telegraph / Gaye Gerard

The Sydney residential property market is in surprisingly better shape going through the pandemic recession than almost every commentator had expected.

As the spring selling season gets underway, one of the most astute market watchers Christopher Joye has also detected signs the COVID-19 induced housing correction may be coming to an end. The main risk to the “nascent recovery is a second wave emerging in New South Wales,” he wrote in the Livewire newsletter, suggesting there was already evidence of a significant deceleration in losses across Sydney.

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Across Australia’s capital cities, home values have declined 2.5 per cent since their April 2020 peak, consistent with his projection that the COVID-19 shock would induce a 5 per cent drop in prices at most.

Sydney prices have stayed resilient. Picture: John Appleyard

“Consensus expectations have entered around much larger price falls of between 10 per cent and 30 per cent nationally,” Joye wrote.

“Our March forecast for a modest correction followed by strong house price appreciation in the order of 10 per cent to 20 per cent in the years thereafter remains intact.”

Joye was the first to spot the last recovery, when after the May 2020 Federal election he advised that a house price recovery was underway.

His latest scenario was premised on “supportive measures in the upcoming federal budget.”

Shane Oliver, the chief economist and head of investment strategy at AMP Capital, forecast prices to fall as much as 20 per cent, and last month was forecasting average property prices will fall by 10 per cent to 15 per cent annually from April.

Oliver still sees Sydney as especially vulnerable given the high dependence on immigration and “greater investor penetration.” He thinks it is likely that the price falls will increase in size from October as the government economic support measures start to decrease.

Auction clearance rates have been steady. (Photo by James Gourley/The Sunday Telegraph)

The Commonwealth Bank has tweaked its forecast but now says Sydney prices would begin a recovery by mid-2020. It’s a significant shift from the bank calculating in May that there was a 30 per cent fall worse case scenario.

“We expect dwelling prices to continue to decline at a modest pace and to trough in Q1 21,” says CBA’s head of Australian economics Gareth Aird. “But we expect solid recovery in prices from H2 21 as borrowing cost becomes the dominant influence.”

I still think unemployment ought be the dominant influence on house prices, but this scenario has not been in vogue since high unemployment last hit the market in the early 1990s.

NSW was fortunate that its unemployment rate going into the pandemic was around its lowest level in a decade, and it has the capacity to proceed full speed ahead with state changing infrastructure projects.

But businesses will need incentives to retain and hire. Many may be understandably reticent to boost their payroll too rapidly.

Their caution is contrasted by the surge in first-time buyer interest, with the latest data showing the First Home Loan Deposit Scheme has helped get thousands of Australians into a home sooner.

The scheme supported one in eight of all first home buyers who purchased a home in Australia between March and June. With essential workers securing one in six of the homes, these guaranteed loan recipients ought be safe even with a prospect of negative equity next year.

The post Sydney property market in better shape than expected through pandemic recession appeared first on realestate.com.au.

Tennis courts, water views, mansions, New York townhouses and penthouses. The IRL digs of the cast of Friends are a far cry from their characters who lived in rent-controlled apartments with roommates.

In reality, the property portfolios of the beloved stars from hit sitcom Friends – which aired from 1994 to 2004 – are a tad more luxurious.

The cast of classic 90s sitcom Friends. Picture: Getty

Here we take a peek inside the cast members’ homes.

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Courteney Cox’s Malibu masterpiece

Courteney Cox certainly has left the life of Friends character Monica and her famous purple-themed apartment behind and had a bit of an upgrade.

The actor calls a 743sqm Malibu property, high above the beach, home today.

It boasts a swimming pool, some serious sun loungers, two acres of garden, tennis courts, stunning sea views and guest cottages.

Matthew Perry, Matt LeBlanc, Jennifer Aniston, Courteney Cox, David Schwimmer and Lisa Kudrow from Friends. Picture: Getty

Cox has shared many glimpses of the luxurious home on social media after she had some quite extensive renovation works completed on the property.

We love the neutral colour scheme and artwork on the walls. It looks like no detail has been spared with the interior design and decorating.

View this post on Instagram

 

A post shared by Courteney Cox (@courteneycoxofficial) on Nov 28, 2019 at 10:37pm PST

Jennifer Aniston’s Beverly Hills beauty

Multiple award-winning actor Jennifer Aniston previously told Hello Magazine that she would’ve loved to be an interior designer if she wasn’t an actress.

Her current home, located in Bel-Air boasts panoramic views, a swimming pool, koi pond and a huge outdoor terrace for entertaining.

View this post on Instagram

 

A post shared by Jennifer Aniston (@jenniferaniston) on Jan 6, 2020 at 11:50am PST

Aniston is no stranger to amazing properties. Before her current home she lived in a gorgeous place in Bel Air with ex-hubby Justin Theroux, which was sold after their split.

And then there was also the beautiful Beverly Hills mansion she shared with her first husband, Brad Pitt.

This current home was the first big reno project she has undertaken solo. She is said to have wanted to create a “Zen-like retreat” and a space that is good for entertaining as well.

David Schwimmer’s East Village townhouse

While Schwimmer is said to be notoriously private and there aren’t many details out there about his property portfolio, the Friends did give fans a rare glimpse in his home in New York during an interview on The Tonight Show Starring Jimmy Fallon since being in lockdown.

He lives in a townhouse in Manhattan with his daughter, Cleo, he had with ex-wife Zoe Buckman. He bought the 1852 townhome in East Village for $5,357,656  ($US3.9 million) in 2010. He has since completed gutted it and completely replaced the five-level brick townhouse.

David Schwimmer, who played Ross Geller, pictured with his ex-wife and daughter in 2015. Picture: Getty

It’s reported that the actor has also previously owned homes in LA and Chicago. He sold the Chicago property in January this year for $1,325,676 ($US965,000).

Matthew Perry’s Pacific Palisades pad

Matthew Perry’s home in LA’s Pacific Palisades. Picture: realtor.com

Actor Matthew Perry put his Malibu beach house on the market for $20.6 million (US$14.95 million) in August.

The four-bedroom oceanfront property is where the Friends’ star has sheltered in place during the coronavirus, cracking jokes about the beachgoers below.

In July it was reported that he dropped the price of his LA penthouse from $48 million ($US35 million) to $37 million ($US27 million). Dubbed “Mansion in the Sky” the property takes up the entire 40^th floor of the building.

Picture: realtor.com

Matt LeBlanc’s mysterious portfolio

“How you doing?” Well, it appears Matt LeBlanc, whose character, Joey, was famous for that line, is doing pretty good these days.

While there doesn’t seem to be as much property news confirmed about where LeBlanc currently lives as his castmates, reports do suggest he owns multiple properties.

Two are said to be just north of Pacific Palisades in Encino. Apparently he also owns a home just north of Santa Barbara in Santa Ynez Valley.

Matt LeBlanc and Matthew Perry. Picture: Getty

Lisa Kudrow’s Beverly Hills mansion

Recent selfies on her social media show a mask-wearing Lisa in her Beverly Hills home during lockdown where she was isolating with her husband and their son.

It is reported that Kudrow in fact owns two multi-million home in Beverly Hills.

Lisa is also said to have previously owned a multi-million apartment in Park City in Utah.

View this post on Instagram

 

A post shared by Lisa Kudrow (@lisakudrow) on May 13, 2020 at 12:23pm PDT

The post Inside the property portfolios of Friends stars appeared first on realestate.com.au.

Scammers are exploiting conditions created by coronavirus to target tenants.

Victorians have lost almost $110,000 to rental cons this year, as scammers exploit conditions created by the pandemic.

The state’s tenants have reported 99 scams to the Australian Competition and Consumer Commission to emerge the hardest hit financially this year, followed by New South Wales renters with $96,423 in losses from 185 cases.

Nationwide, scammers have prised more than $300,000 from tenants — up 76 per cent on a year ago — by offering fake rental properties to dupe them into handing over money or personal information.

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Victoria’s coronavirus-driven ban on physical home inspections could be leaving its tenants more vulnerable, with ACCC deputy commissioner Delia Rickard revealing con artists were using “government restrictions to trick people into transferring money without inspecting” properties.

In-person inspections are outlawed in the state until at least October 26, assuming Melbourne records fewer than five COVID-19 cases per day for the two weeks prior.

Ms Rickard said scammers were also offering reduced rents due to COVID-19 and luring victims by posting ads on real estate or classified websites. They were also targeting people who posted on social meeting about seeking a room.

Australian Competition and Consumer Commission deputy commissioner Delia Rickard said falling victim to a scam could be “devastating” for anyone already struggling financially due to COVID-19.

The ACCC said after a victim responded, scammers were asking them to lodge an upfront deposit to secure a rental, or phishing via a “tenant application form” for personal information and documents including passports, bank statements or pay slips.

They promised to supply the keys after they collected the payment or information, and may even make up excuses for further money transfers, impersonate real estate agents and organise fake inspections.

Victims had arrived at addresses to discover a property didn’t exist or was already occupied, the ACCC said.

People aged 25 to 34 have reported the most scams, with those in the Australian Capital Territory ($74,191) and Queensland ($51,975) also suffering substantial losses.

Victorians have lost $109,639 to rental scams this year.

Ms Rickard recommended renters “view a property in person before paying any bond or rent money” to avoid being conned.

But she added Melbourne tenants who were unable to walk through properties could help protect themselves by searching online to confirm a property existed and, if dealing with a property manager, confirming they were licensed.

“Scammers often rely on email communications to avoid identification,” she said.

“Do an independent search for a phone number and speak to the property manager over the phone or arrange a meeting in person.

“Many people are also experiencing financial difficulties due to the pandemic and the financial impact of falling victim to a scam can be devastating.”

Anyone who suspects they have been conned should act quickly by contacting their bank and, if relevant, the platform on which they were scammed to inform them. They can also make a report via the ACCC’s Scamwatch website.

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samantha.landy@news.com.au

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Mortgage holidays will soon be over for some homeowners, with tighter eligibility conditions looming at the end of September and distressed sales potentially on the horizon.

But banks have promised to extend repayment deferrals for those still facing coronavirus-driven financial hardship, with Victorians under lockdown expected to need the helping hand.

Advantage Property Consulting director Frank Valentic said borrowers had been on a “free holiday” for six months, but banks would “want to see all your financials for assessment” for an extension.

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Mortgage holiday extensions will be assessed by the banks. Picture: iStock

Buyer’s advocate Frank Valentic said some distressed listings may appear.

“Essentially, the holiday’s over at the end of September. And you’re going to have to prove you can keep (staying) on the holiday, or you may end up in a position where you’re having to sell the property,” Mr Valentic said.

“I’m sure there’ll be a lot of people there who don’t meet the criteria.”

He anticipated a spike in distressed listings, which would be almost impossible to sell while a ban on physical property inspections remained in place.

Many Victorians are still unable to make full mortgage repayments, with non-essential businesses including retail, restaurants and gyms closed under lockdown.

Melbourne restaurants including Andrew McConnell’s are closed. Picture: Jason Edwards

Banks will contact borrowers individually to assess deferrals. Picture: iStock

But Australian Banking Association chief executive Anna Bligh also said it was unlikely customers who had honest conversations with their bank would be forced to sell their home.

“We would strongly encourage any consumers who are on a deferral or hardship arrangement to talk to their bank before it ends,” Ms Bligh said.

“People find it difficult to talk about their financial situation and will often soldier on trying to resolve the situation themselves.

“Your bank can’t assist you if you are not frank with them about your circumstances”.

CEO of the Australia Banking Association, Anna Bligh

Moneycat Finance chief executive Evan Davis said banks would “be very sympathetic to those genuinely in hardship”. But they could also scrutinise salaries, business turnover results, account transactions and JobKeeper payments before making a decision.

He encouraged those on holidays to consider whether they were able to start making full repayments again, to avoid interest adding up.

The Australian Prudential Regulation Authority estimated about $167b worth of home loans — about 9 per cent of all mortgages — were deferred across Australia by the end of July.

ANZ confirmed there were options available for those still needing support.

About 20 per cent of borrowers on holidays had still achieved partial repayments since then.

Mortgage Choice chief executive Susan Mitchell said the pace of borrowers coming off deferrals had also picked up, which was “reassuring, as it shows that borrowers weren’t taking a ‘holiday’.”

“The recent lockdown in Victoria would have had a greater impact on borrowers and small business owners,” Ms Mitchell said.

“Solutions will vary but they may be able to seek an extension to their deferral, or a restructure of their loan.”

Westpac estimated about half of the 135,000 repayment relief packages provided to customers would not need to be extended beyond September.

The bank’s acting chief financial officer Gary Thursby said “more time and breathing space” would be available to customers who “aren’t in a position to return to full payments again from October.”

Westpac provided 135,000 repayment relief packages. Picture: Bianca De Marchi

“However, we anticipate a significant number of customers will be able to resume regular repayments when their deferral term ends,” Mr Thursby said.

“We expect these customers to start their repayments again and we would encourage as many people as possible to do so.”

The ANZ also confirmed borrowers who met eligibility criteria could move on to an interest-only payment scheme or continue deferring repayments for an additional four months.

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