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Melbourne lockdown: Petition urging real estate to reopen takes off

Real estate agent on reopening

Ray White Werribee director Michelle Chick says the real estate industry just needs to be able to run private inspections to function. Picture: Jay Town

More than 1600 people have signed a petition that calls for Melbourne’s real estate sector to be able to reopen, arguing waiting several more weeks as the government plans will “cripple people financially”.

The petition on the Parliament of Victoria website states the “requirement to find a home is unquestionably essential”, and that both agents and consumers are desperate for physical one-on-one inspections to be allowed again.

It urges the state government to work with the Real Estate Institute of Victoria to “create and implement a COVID-19 Safe Plan” for reopening the sector and running private inspections.

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This could include checking the temperatures of prospective buyers and tenants upon arrival at homes, sanitising door handles and surfaces, enforcing social distancing, and recording attendees’ contact details to lodge with the Department of Health and Human Services.

The petition said waiting until October 26, as the government planned, to revive the crucial element of the selling and leasing processes would “cripple people financially”.

“Those who have purchased and need to sell, and those who’ve been evicted due to landlords returning to occupy and cannot inspect a new rental home, have been burdened by the COVID-19 restrictions,” it said.

Signatory Frank Valentic, director of Advantage Property Consulting, said his business alone had about 25 would-be vendors “hurting” from being prevented from listing now-vacant investment properties, and 20 buyers ready to pounce but unwilling to purchase without physically inspecting homes.

“I, myself, have sold to downsize, and I can’t get through any properties to buy my next home,” he said.

“There are lots of people in my shoes. It’s pretty traumatic for older people who have sold long-time homes (and) young families.”

Home Truths portrait of Frank Valentic

Buyer’s advocate Frank Valentic says real estate’s continued closure hurt dozens of associated industries as well.

Those who had already bought new properties but couldn’t sell their old ones were also at risk of being unable to settle on their purchases and losing their deposits, Mr Valentic said: “Daniel Andrews said he wouldn’t stop people from settling, but he is.”

The people working in the many real estate-associated industries were essentially out of work until the sector could reopen, he added, including conveyancers, and photographers and stylists, who were banned from attending properties under stage four restrictions.

“Real estate is an essential service. And we’ve never had any cases of COVID-19 (from real estate activity),” he said.

“The main thing we need is getting one-on-one inspections back, nothing else really needs to happen.

“No one is going to buy without inspecting a property, unless they’re really desperate. People aren’t going to spend hundreds of thousands or millions of dollars and risk buying a lemon they’re not happy with.”

Case study: seller left in limbo

Lyn Davenport and her 12-year-old daughter, Grace, sold their Mornington home in between Melbourne’s two lockdowns but now can’t inspect rentals to move into due to the ban on physical inspections. Picture: Alex Coppel.

Ray White Werribee director Michelle Chick agreed Melbourne’s real estate sector really only needed that one little freedom to save hundreds of homeowners and tenants from financial and mental stress.

“Everything else, we can do virtually — appraisals, listing appointments, signing any documents. We’ve had a lot of success with online auctions,” Ms Chick said.

“We just need that final piece of the puzzle.”

Ms Chick said buyers were embracing online auctions, with Ray White Group running more than 700 of them since COVID-19 restrictions first started in March. But the vast majority were unwilling to commit to homes without “being able to walk through to feel, touch, smell and get to know the property”.

“Some have had to move on for financial reasons, or to get into school zones for their kids,” Ms Chick said.

“People are having to put plans on hold, which is causing a lot of stress, financially and mentally.”

This included clients of hers who needed to move to get their special needs child into a particular school.

“Their house is sitting there on the market. We have 3D virtual walk throughs online, and we’re doing walk throughs with vendors … via Zoom. But buyers are still waiting to go through,” she said.

28 Twin Creek Court, Sunbury sold sight-unseen during lockdown for $999,995.

Ms Chick said her agency would ensure its inspections were COVID-safe by allowing only one agent and one prospective buyer or tenant to attend, providing masks and gloves for both to wear, checking temperatures, carrying out deep cleans on homes, enforcing physical distancing, and record keeping to allow for contact tracing.

The Real Estate Institute of Victoria is campaigning for private inspections to resume as

part of the second step on the state government’s road map to reopening, due to start September 28, rather than the third.

Victoria will need to record fewer than five daily coronavirus cases over the two weeks prior to October 26 to reach the third step, at which point “outdoor auctions subject to gathering limits” will also be allowed.

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samantha.landy@news.com.au

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Coast with the most a holiday maker’s paradise

12990 Tasman Highway, Swansea. Picture: SUPPLIED

HOW often does the chance come along to grab a slice of the lauded Freycinet Coast?

Starting at about $500,000, single, double and triple-bedroom residences will be built at the luxurious Piermont Retreat property south of Swansea.

Knight Frank property consultant Adele Plunkett says investors will be able to enjoy the best of both worlds.

She says as well as owning an impressive coastal holiday home — and being able to vacation there themselves — there will be opportunity for Piermont to lease and manage the holiday rental home for the owner.

“A management agreement, specs for furniture and projected income returns are available on request,” she said.

“At present there are a two-bedroom and a three-bedroom property completed and sold.”

Life would be a dream.

Luxurious.

Enticingly, Piermont Retreat’s facilities will be available to the owner, too, including its award-winning restaurant, swimming pool, tennis court, walking trails, private beaches and equestrian parkland.

The accommodation at Piermont has been described as “ecologically sustainable luxury” with a lack of superfluous decorations and glitzy polishes. Its creators prefer lovingly finished details, handcrafted from natural materials.

Adele said the strata titled villas would be built to the high standard that Piermont was renowned for.

“At this stage the vendor is offering a couple of single bedroom villas on Lot 252 and 264.

“These will be constructed of vertical timber and will be single storey; only slightly different from the larger properties.

“There will be a two-bedroom villa on Lot 248 from $895,000, a three-bedroom villa on Lot 266 from $945,000 and a waterfront home with three bedrooms on Lot 244, priced from $1,175,000.”

Raw materials.

Natural beauty.

Prices include building completion and all fixtures, fittings and furniture.

These chic contemporary properties were designed by JCB Architects to blend with the natural landscape and provide luxury accommodation that accentuates an indoor/outdoor seaside lifestyle.

The interiors were designed and styled by Hecker Guthrie with a natural palate and European influence.

The strata allotments have been strategically placed to provide privacy and beautiful vistas over Great Oyster Bay and the iconic Freycinet Peninsula.

The secluded waterfront position at Piermont affords a delightful setting with a serene environment for holiday living.

“These captivating villas will encompass all this with the benefit of a good return for your investment,” Adele said.

Prices for No.12990 Tasman Hwy, Swansea range from $495,000+ to $1,175,000+. Contact Knight Frank for details.

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The Sydney suburbs where you can buy based on your salary

Real Estate Aerials

Recent price falls have made Sydney more affordable. Picture: John Appleyard

Housing has become more affordable for buyers on middle- and lower-incomes, opening up access to suburbs that were previously out of reach.

Recent falls in prices, spurred on by the economic fallout from the COVID-19 health crisis, has meant those on annual incomes of less than $80,000 can buy in suburbs where the average houses were only affordable for households earning more than $100,000 back in March.

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An analysis of mortgage and price data by Finder.com.au found that southwest suburbs Elderslie, Spring Farm and Hebersham had seen significant improvements in affordability, thanks to cheaper prices and a fall in home loan rates.

Real Estate Aerials

Buying a house in Manly won’t come cheap. Picture: John Appleyard

Buyers in these suburbs only needed to earn around $70,000 to afford monthly repayments if they had a 20 per cent deposit and the lowest rate on the market, which sits around 1.95 per cent.

“The door is now open for lower- and middle-income buyers,” Finder.com.au insights manager Graham Cooke said.

“We are seeing the first sub-2 per cent rates appear in the market, with one 1.95 per cent product available nationally, and many others in the same ballpark.”

There were similar changes on the Central Coast, with suburbs like Chittaway Bay, Bateau Bay and Hamlyn Terrace.

Western suburbs South Penrith, Marsden Park and Emu Plains were also in the same boat.

Sydney’s cheapest markets for a house, Austral and Wilmot, required a minimum income of $43,000 a year.

An income of $80,000 is required to buy in Liverpool, $60,000 in Campbelltown and $76,000 in Fairfield, based off an interest rate of 1.95 per cent

In Castle Hill that number jumps up to $163,000, while Kellyville residents require an income of 128,000 to secure a house.

Real Estate Aerials

You would need an income of around $550,000 to buy in Vaucluse. Picture: John Appleyard

For units, Berkeley Vale on the Central Coast is the cheapest market, with a required minimum salary of about $36,000.

To buy a unit in inner west hot spot Leichhardt, a salary of just over $100,000 is required, while the figure drops to $72,000 in Newtown.

In comparison, to buy a house in a premium Sydney area like Vaucluse, you will need a salary of $554,000.

In Bellevue Hill that number rises to $663,000.

To buy a house in Manly you will need an income of just over $300,000, while in Cronulla it is around $230,000.

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Gold Coast property: new unit market records decline in sales but sales rate is up

DESPITE recording a decline in sales, the Gold Coast new apartment market is showing resilience with a higher sale rate than 12 months ago.

The Urbis Gold Coast Apartment Essentials Insights revealed a decline in sales during the second quarter of 2020 – down from 265 during quarter one to 156.

While this is a lower result than the previous three quarters, the market recorded a higher sales rate than 12 months ago when 153 sales were recorded during quarter two of 2019.

Surfers Paradise Aerial

An aerial view of the Surfers Paradise skyline.

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The report revealed COVID-19 has impacted the momentum that was in the market and caused a slowing of sales rates as overseas and interstate investors are hampered by border restrictions.

“While there is still uncertainty and caution in the market, Queensland’s response and results during COVID-19 will bode well when borders open and interstate and overseas buyers can move freely,” said Urbis director Lynda Campbell.

“As people reset and reassess their living and employment options, the Gold Coast is well placed to see an influx of investors and new residents looking for a lifestyle change.

“The ability to work from home, or from any location with reliable internet, has been proven and is a previous barrier to interstate and overseas migration that has been removed.”

Cannes at Surfers Paradise, a project by Marquee Development Partners.

The weighted average sale price increased $51,813 to $861,624 while supply levels have fallen to their lowest level in six years.

At the end of June 2020, there were 813 new apartments available for sale – the lowest level since quarter two of 2014 when there were 721 remaining on the market.

The majority of new apartment stock for sale is in the GC Central Precinct.

No new projects were launched during the quarter but there are 14 projects pending launch over the next six to nine months containing 723 apartments.

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3 realities broker-owners can’t ignore

As a broker in 2020, if you want to keep your team intact — let alone grow it in numbers — you need to keep your finger on the pulse of what’s going on. Here are three issues you need to factor in and learn from.