Coronavirus NSW: Ban to be lifted on house inspections, auctions

Homebuyers in NSW will soon be allowed to attend auctions and open houses as the state government continues to wind back restrictions in response to the low number of coronavirus cases.

• Sydney regions with fastest price rises during COVID-19
• Buyers flock to Sydney’s most popular suburbs

Homebuyers will be able to inspect properties and attend on-site auctions from next weekend as the state government ditches another coronavirus restriction in its bid to kickstart the economy.

Almost six weeks since Prime Minister Scott Morrison announced real estate auctions and open houses were banned as part of a national cabinet crackdown on gatherings, Treasurer Dominic Perrottet and Health Minister Brad Hazzard have agreed the health measure could be wound back in response to the ongoing low number of COVID-19 cases in the state.

The move comes amid anticipated losses of “more than a billion dollars” in stamp duty revenue over the coming months should the restrictions on the market remain in place.

Real estate auctions and open houses were banned as part of a national cabinet crackdown on gatherings amid the coronavirus pandemic. Picture: Andrew Henshaw

However, health will remain the top priority with agents and vendors planning a return to traditional property inspections and on-site auctions will be urged to adhere to a strict set of guidelines designed to limit any spread of virus.

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Under the guidelines, real estate agents will be encouraged to avoid overcrowding by limiting the number of people viewing a property or attending an auction to enable physical distancing of 1.5m to be maintained.

Properties will also be required to undergo stringent cleaning, with clients advised against touching surfaces.

Hand sanitiser will also be mandatory at inspection and auction sites.

Agents will also be required to keep detailed contact records of people attending open homes and auctions to allow for contact tracing should it be needed, while also ensuring people with any symptoms of illness not be allowed to attend a property.

The number of people entering small spaces will have to be carefully managed with agents encouraged to extend time for open house viewings and inspections.

Agents will also be encouraged to use outdoor venues for auctions with those that have to be held indoors to be done so in a large venue where physical distancing between household groups of one person per 4m2 equivalent is possible.

Under eased restrictions, agents and vendors will still need to follow strict health guidelines. Picture: AAP.

While there has been a slump in clearance rates, home prices rose marginally across most capital cities in March with as buyers and sellers shifted transactions online.

However, a senior government official said the impact of ongoing sustained restrictions on the property market would significantly reduce transactions.

“Without an easing of restrictions, there would be a significant decline in stamp duty in the coming months with losses of more than a billion dollars,” the official said.

Describing the past few weeks as ”a dark period” in NSW, Mr Perrottet said the relaxing of restrictions was a sign of the ongoing success in limiting the spread of COVID-19.

However, community safety and social distancing would remain an ongoing priority, urging only genuine buyers to attend inspections and auctions, not “spectators”.

“Bit by bit we are starting to be able to roll back some of the restrictions, and each time we do, it’s a ray of sunshine in what has been a dark period,” Mr Perrottet said.

“We are glad the real estate industry can put out the welcome mat again, but it doesn’t mean everyone should come storming in for a house party. The last thing we want to have to do is tighten restrictions down the track because people didn’t take enough care and use common sense.”

Despite a ban on traditional auctions and house inspections, prices have actually increased in most capital cities during the COVID-19 outbreak. Picture: Nicole Cleary.

“When it comes to this change, a simple home truth is to leave the house hunting to the genuine buyers and sellers and avoid overcrowding. Everyone loves an auction, but now is not the time to treat it as a spectator sport, if you are not a genuine interested party it’s best to check the result in the paper the next day.”

Auctions and open houses will resume in the Northern Territory this week with other States hoping to follow suit.

Mr Hazzard urged real estate agents and the community to continue to exercise vigilance and care as face-to-face inspections and auctions recommenced.

“The community has done an outstanding job in limiting the spread of COVID-19 and we need to make sure we continue to exercise vigilance and care,” he said.

The Government is also encouraging people attending an open for inspection or auction to download the COVIDSafe app to help limit the spread of the virus.

Originally published as Coronavirus NSW: Ban to be lifted on house inspections, auctions