Open homes and on-site auctions no longer banned as NSW government gets ready to lift COVID-19 restrictions
It’s a much-welcomed shot in the arm for the real estate market. Since the bans were put in place on March 25, the number of listings fell, discounting increased, and Sydney’s auction clearance rate hit its lowest level in 15 years.
“It’s a sign things are starting to get back to a little bit of normality and we all can’t wait for that,” she said.
“This will give people optimism. Vendors who were saying they wanted to sell but were waiting to see what would happen, this will give them enormous confidence to return to the market.”
Treasurer Dominic Perrottet and Minister for Health Brad Hazzard said the relaxing of restrictions was a sign of the ongoing success in limiting the spread of COVID-19 but warned there was no place for complacency, with community safety and social distancing to remain an ongoing priority.
“Choosing a home is one of the biggest decisions anybody makes, and easing the restrictions to ensure people can more easily inspect, buy or rent a property is an important step for NSW,” Mr Perrottet said.
“The real estate industry has been adaptable in transitioning to online auctions, property inspections by appointment or online, and now as we make the move back to a more normal mode of operation we must ensure safety measures such as social distancing remain a key part of the process.”
Ms Pilkington said she expected open homes and on-site auctions would look a little different for a while yet.
“I don’t see us just having open homes and getting everyone to come through. The idea of still booking people in just to make sure we won’t have a glut of people will have to happen,” she said.
“In relations to auctions, we’re looking at auctions with bidders only, rather than everyone from the street coming to watch.”
She said the impact of this relaxation was about more than just selling houses.
“This is recognition from the government for the importance of real estate on the economy,” she said.
“There’s not just real estate agents involved, there’s conveyancers, pest and building, stylists, photographers, removalists, landscapers, the list goes on.
“It has a flow-through impact on the entire economy and that is why this is so encouraging.”
Sydney saw a surge in auction withdrawals during April, recording a clearance rate of 36.3 per cent, according to Domain’s latest auction report card.
Domain data also showed that between March 23 and April 10 new sale listings dropped 12 per cent compared to the same period last year, while more than 14 per cent of vendors revised their price expectations, reducing them by 4.36 per cent on average.
Luke Northcott of Ray White Petersham has a Victorian terrace home at Stanmore scheduled for a virtual auction on 10am on Saturday May 9. It could now be one of the first homes to go under the hammer in person.
He said having buyers see each other could inspire some competition during the open home and bidding process.
“It’s a sign that buyers will see things more confidently,” he said. “For the vendors who’ve told us they want to wait, this could be what brings them back. For the people who’ve had the luxury to wait, I’d dare say this could be what brings a bit more property back to the market.”
Mr Perrottet urged a common-sense approach across the industry.
“If we want to keep as many people in jobs as possible and businesses in business it is important to follow the safety advice and not put others at risk,” Mr Perrottet said.
“If people are not genuinely in the market for a new home, now is not the time to be having a look through their neighbour’s house.”
Restrictions have been easing in various degrees around the country over the past week, with Queensland Health announcing last week that inspections with up to six people (including the real estate agent) were permitted from Friday, May 1. In-room auctions and open homes are still banned in Queensland.
The Western Australian government announced last Sunday that up to 10 people at a time would be allowed to attend open homes.
Originally published on domain.com.au
3 May 2020
