Victoria’s peak real estate body says a draft government plan, outlined in top-secret leaked documents, to keep the Melbourne market operating entirely online for several more weeks would cause widespread “hurt”.
The documents revealed by the Herald Sun on Thursday state that under the draft plan, the city’s real estate industry would only be permitted to operate online under a stage four lockdown extended to September 28, and also in an eased “stage three plus” phase.
That phase would remain in place until Victoria’s daily average COVID-19 cases dropped below five over two weeks, with less than three cases from an unknown source over that period.
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The REIV wants on-site auctions to resume in Victoria — with some limits. Picture: Alex Coppel
Private in-person inspections would be allowed under a stage two lockdown. But auctions would have to remain online until no new cases were recorded for two weeks, at which time the real estate sector would be able to operate more freely “with safety measures and record keeping” under stage one and stage zero restrictions.
Premier Daniel Andrews said on Thursday the leaked documents were “out of date and have no status”.
“Sunday is the day the government will announce our road map,” he said.
Real Estate Institute of Victoria president Leah Calnan said this plan has not been confirmed to her organisation, which so far had only been part of an hour-long industry call with the government that looked “at the next steps”.
“It would be extremely disappointing to see the industry remain on online inspections. It’s continuing to hurt consumers, the industry, and revenue to the government,” she said.
The REIV had instead recommended on-site auctions and open houses be revived — with COVID-safe controls in place — as an early stop on the government’s “reopening road map”.
“We know we can manage conducting auctions and open for inspections appropriately and safely,” Ms Calnan said.
“The real estate industry is an integral part of the state’s economy — 46 per cent of the state’s revenue comes from real estate taxes, like land tax and stamp duty.
“We should have been deemed an essential service (as providers of shelter).”
REIV President Leah Calnan said real estate should be considered an “essential service”.
Real estate agents, photographers, videographers, stylists, and buyers were all banned from attending Melbourne homes as a result of the restrictions introduced in early August, making it difficult to list and sell properties.
Private in-person inspections have been allowed under regional Victoria’s stage three lockdown, but auctions have had to be held online in all parts of the state.
The REIV is also calling for the Melbourne and regional Victorian markets to be brought in line as a next step.
The organisation has recommended attendance limits of 10-20 people at on-site auctions and open for inspections, depending on the size of the property.
Ms Calnan said agents should also be required to enforce social distancing, abide by strict hygiene practices that included wiping down surfaces and door handles, wear masks and gloves, and keep attendees’ details in case contact tracing was needed.
She added Melbourne-based buyers should regain the right to travel to regional Victoria to inspect homes when restrictions eased, while agents should be able to reopen their offices. But the REIV would recommend agents kept working from home when they could.
She said while the Melbourne market had managed to keep operating entirely online — with “vendors co-ordinating Zoom open for inspections and property managers able to facilitate Facebook Live opens” — activity had drastically reduced during stage four.
Barry Plant’s Spiro Drossos said reviving private inspections was key to boosting market activity.
Barry Plant Doncaster East managing director Spiro Drossos said while being able to run on-site auctions and open for inspections was preferred among agents, allowing private inspections was “the most important” step in reviving the market.
“Buyers are buying remotely. But the majority of people still want to inspect,” Mr Drossos said.
“The industry did a great job of upholding safety and distancing (before stage four), and we could still service the people who were looking at buying and selling.”
Mr Drossos said there was a “build up of properties” ready to hit the market once the inspection ban was lifted, with his agency’s Eltham, Whitehorse and Manningham offices conducting 687 virtual appraisals over August.
He urged any would-be spring vendors to start booking in photographers, stylists and gardeners now so they didn’t have to wait weeks to list.
Wakelin Property Advisory director Jarrod McCabe said while the property market needed on-site auctions and open for inspections to fully regain steam, there was no guarantee either would return this year given the pandemic’s unpredictability.
Stockdale & Leggo general manager Charlotte Pascoe said confidence would return to the market once “clarity returns, and the government lifts the messy restrictions”.
“It’s like agents, along with buyers, vendors, tenants and landlords, are at the starting gate ready to go but the gun has been lost, so we are all just waiting with no clarity on when it will go off,” she said.
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