House buyers sold on virtual tours

Video or 3D property inspections are spiking amid social distancing, even as the number of new homes for sale dries up.

Real estate agent Kim Morgan doing a Facebook live open home in Mount Nelson in Hobart. Picture: LUKE BOWDEN

Home buyers are embracing the digital world, with the use of virtual property viewing technology spiking, despite the number of new homes on the market drying up.

Punters have been quick to seize on new web-based technologies to look at homes after bans on open inspections imposed as part of measures to prevent the spread of COVID-19.

New realestate.com.au data has shown the number of prospective buyers using 3D tours of properties on the site increased by 285 per cent in the second week of April compared to the same week of March.

Views on digital inspection videos were also up 88.3 per cent over the same period.

Online auctions have also proved successful, with CoreLogic data showing around a third of homes put under the hammer selling over the past month, despite a ban on public auctions.

Real estate agent John McManus being filmed by his daughter Morgan for a virtual inspection in Sydney. Picture: AAP

Despite evidence of strong demand, the economic downturn caused by the virus has spooked many potential sellers. Ray White Group managing director Dan White says the group as a whole “is selling more than we are listing”.

Across the Australian network last week, around 640 homes were put up for sale with Ray White, a 50 per cent drop on the same time last year. While there has been some positive signs of sellers willing to test the market, Mr White says numbers will remain down until vendors can see buyers paying up.

“Listings have dropped but buyer numbers haven’t. Life in isolation has seen a spike in online traffic from consumers interested in property, tips, agent advice and rentals,” Mr White said.

“Appraisals can be undertaken safely under level three restrictions, and we have a range of safe ways for potential vendors to come to capitalise on the fact that there is little competition from other investment markets. We know people are looking and interest rates won’t get much cheaper.”

Realestate.com.au surpassed its largest ever audience record last month, as 10.7m visitors clicked on the site through March. With buyers looking for ways to satisfy their property appetites, REA Group chief sales officer Kul Singh said it’s important the site can support the industry during unprecedented times

“We are really pleased that our new digital inspections and online auctions features have had an immediate impact, helping connect agents with more buyers, sellers and renters.

“This comes at a time when face-to-face interactions are limited as we all rally together and stay at home wherever possible to help stop the spread of COVID-19.”