Physical home inspections have been banned under stage four restrictions. Picture: Tim Carrafa
Property inspections will only be able to be conducted online under Melbourne’s tough stage four restrictions in a move experts say will essentially grind the market to a halt.
A post on Premier Daniel Andrews’ Facebook page last night listed “property and real estate” among businesses that will close for at least six weeks from 11.59pm Wednesday, with “online inspections and auctions permitted”.
A Victorian Government spokeswoman has confirmed this as correct, noting auctions will also need to shift online in regional Victorian property markets under its stage three lockdown. But private one-on-one inspections will still be allowed regionally.
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The post on Daniel Andrews’ Facebook page.
The government briefly outlawed physical inspections of occupied homes in April, overturning the ban just a few days later after an impassioned campaign by Victoria’s real estate industry.
The Consumer Affairs Victoria website stated at the time that being able to conduct in-person inspections would make it impossible for “agents, prospective owners or tenants, and existing tenants to each comply with their legal requirements” to prevent the spread of COVID-19.
Victoria’s real estate industry dubbed that ban “an overkill that will have incredible repercussions” for buyers, sellers, renters and agents, noting the vast majority Australians were reluctant to purchase homes sight unseen.
Real Estate Institute of Victoria president Leah Calnan echoed this view in response to the latest ban, noting while people would “lease properties without viewing them, I’ve never known of many people buying properties sight unseen”.
As such, the restriction would “essentially” shut down the Melbourne real estate sector.
“The impact is on many levels — not only financial impact to state’s economy, but also the inability to be able to provide accommodation across the state by selling or leasing,” Ms Calnan said.
RT Edgar Inner West director Joanne Royston said the ban was a cruel blow to agents who had been working hard to follow COVID-19 hygiene and distancing requirements.
“We’ve been taking our hand wipes and sanitiser out (to properties), we’ve been masking up,” she said.
“We’re also trying not to enter the houses to eliminate too many people being inside. And we’re maintaining social distancing to make people feel more comfortable.”
An inspection conducted via the Gavl online platform earlier this year.
Wakelin Property Advisory director Jarrod McCabe expected the stage four lockdown — which also placed the city under an 8pm-5am curfew and banned residents from travelling further than 5km from their homes — to bring “added tension” to the market and further thin out the prospective buyer pool.
But with the harsh restrictions set to end on September 13, he said there was hope the traditionally busy spring selling season could revive the market.
“It won’t be your traditional spring market — with interruptions like the AFL Grand Final and the Spring Racing Carnival (bringing down auction volumes) — there will be consistency,” Mr McCabe said.
“Hopefully supply will pick up once we can conduct public auctions again.”
Mr Andrews flagged further real estate announcements on Monday afternoon, noting his government was getting “specific advice” on whether people would be able to settle on property purchases and move house.
“I think the answer will be ‘yes’ if you’ve got a contract, an arrangement in place,” he said.
An extension of the residential and commercial eviction moratorium was also on the cards, while tradies will only be permitted into Melbourne homes for “emergency” works.
The construction industry will be allowed to continue operating at a scaled-back level.
EYS Auctions director Fabian Sanelli said regional agencies could follow the online blueprint that had helped the Melbourne market continue through lockdown conditions.
Barry Plant Geelong agent Mitchell Falzon said his agency would also adopt the sale-by-set-date method, noting the market was “showing how sustainable (it) is” despite challenging conditions.
Interest from families and land bankers was helping demand outweigh available housing stock levels in the city, he said.
-with Jack Boronovskis
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