Physical inspections of Melbourne homes won’t be allowed again until at least October 26, essentially keeping the property market on ice well into its busiest selling season of the year.
Property players have described today as a “grim day for real estate”, saying buyers and renters having the ability to set foot in the homes they’re interested in is crucial to the selling and leasing processes.
The Victorian Government’s “roadmap for reopening” document lists “private inspections by appointment only” and “outdoor auctions subject to gathering limits” among permitted activities under the third step in easing COVID-19 restrictions.
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Melbourne’s real estate sector will be locked down for several more weeks. Picture: Alex Coppel
To reach that step, Victoria must record fewer than five daily cases over the two weeks prior to October 26.
The last step on the roadmap — to apply from November 23, given the state has no new cases for two weeks — will allow real estate to operate with “safety measures and record keeping”.
In the meantime, the government has confirmed only services related to property settlement and the commencement of or ending of a lease, including removalists, are allowed.
Real Estate Institute of Victoria president Leah Calnan previously told the Herald Sun it would be “extremely disappointing to see the industry remain on online inspections” for several more weeks.
“It’s continuing to hurt consumers, the industry, and revenue to the government,” Ms Calnan said.
In-person inspections have been outlawed in Melbourne since stage four lockdown began in early August, with real estate agents, photographers, videographers and stylists banned alongside buyers from attending homes.
SQM managing director Louis Christopher said this had caused a “near entire freeze up” of the market, while buyer’s advocate Frank Valentic said it had “literally shut down the property market”.
Fellow buyer’s advocate Cate Bakos called today a “grim day for real estate”, as it had kicked off “another seven weeks of not being able to transact or inspect”.
REIV president Leah Calnan said a continued ban on in-person inspections was “extremely disappointing.
Ray White Werribee director Michelle Chick said home sellers had been doing their own photography and videos in a bid to keep sales moving under the stage four lockdown.
But while buyers were “quite open to” purchasing property via online auctions, “not being able to walk through that property first is something they are not open to”.
“If we can’t do private inspections, well then that’s certainly not going to end well,” she said.
Ms Chick said her agency was preparing up to 60 homes for sale this spring, all of them waiting for today’s announcements to make a decision.
The REIV had recommended on-site auctions and open houses be revived this month — 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).”
Online auctions are set to continue well into spring. Pictured is EYS auctioneer Fabian Sanelli. Picture: Jay Town
Meanwhile, construction industry sources have indicated they believe they will move from heavily restricted to restricted activity from September 28.
While this is yet to be confirmed, they expect this will include allowing larger building sites to return to 85 per cent capacity, from 25 per cent at present, and early stage land development to jump from 10 people per hectare to 20 people per hectare.
It is understood a further briefing will be held with industry members at 3pm today.
Urban Development Institute of Australia Victorian chief executive Danni Hunter said her organisation had “spent the past week providing expert advice to the government, demonstrating our industry’s ability to keep COVID-19 cases at a minimum, manage and mitigate the risk of any outbreaks on worksites and keep our industry working safely”.
“This has put the building, construction and development industry in the strongest possible position to be able to get back to work as soon as possible,” she said.
Ms Hunter said they welcomed the government’s vote of confidence in their efforts to date, and expected they would be able to increase activity “significantly” from September 28, so long as case numbers remain low.
“Our industry wants to get back to work,“ she said.
“We have made the strongest possible case for getting back to work and the government is listening and will support our industry and our workforce just as we support the Victorian economy.”
Premier Daniel Andrews said on Sunday if Victoria opened too fast, there would be a “very high likelihood we are not really opening up at all”.
: We are just beginning a third wave, and we will be back in and out of restrictions … before
the end of the year,” he said.
“We have to take a steady and safe steps out of lockdown.”
-with Nathan Mawby
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