Look, but don’t touch, warn property agents at remaining open houses on virus fears

In what could be a sign of things to come, property agents are cancelling open houses on fears of coronavirus contagion.

Prospective buyers may not be able to inspect properties if the coronavirus containment measures become more stringent. Picture: Julian Andrews.

Open homes in Sydney and Melbourne are being been cancelled as real estate agents take precautions against the spread of coronavirus.

While cancellations are being done on a case-by-case basis and are being replaced with viewings by appointment, Real Estate Institute of Australia president Adrian Kelly said the cancellations may be indicative of where the market would go if the outbreak worsens.

“I think people are being a bit more cautious, which is a good thing,” Mr Kelly said.

“One of the reasons for it is the virus itself and people getting sick. The other option is people panicking and getting fearful.”

Several national agencies have sent advice to their networks to take precautions to help slow the spread of the disease. Hand sanitiser is now being provided at most open homes, with some agents choosing to ask clients to limit the amount of surfaces touched and to use voice to text technologies when communicating via phones and iPads.

Ray White chief executive Dan White said the agency was still “open for business”, and was registering high buyer demand on the back of reduced listing levels and record low interest rates. However, said the proof would “be in the pudding” this weekend, pointing to the number of attendees at auctions and open homes as an indicator of market jitters.

“There is a lot of digital stuff now. There are ways people can inspect without groups and there’s online auction. There is a lot that can be done and we will adjust as this outbreak goes on,” Mr White said.

Auctions may become difficult if public gatherings are restricted. Picture: Jay Town

The decision on whether open homes will continue will depend mainly on the federal government's response with regard to a ban on gatherings, like those seen in Italy and Japan. One agent, who asked not to be named, said such restrictions could have significant implications for the market.

“I think everyone will be looking at the situation in case social interaction is restricted. I don’t think there is a reason to panic at this stage. If that does happen, it will really affect the marketplace. It might as well shut down,” he said.

Any restriction on public gatherings could also stop a large number of auction sales, which are still generally conducted in person amid a gathering of bidders at the property being sold, or at a public venue in rooms or a hotel.

Sellers are also making decisions based on the virus, choosing to hold off on listing their homes or taking them off the market.

Mr Kelly said the decision was understandable due to the knock in economic confidence caused by the virus.

“While such a notion is completely understandable, it doesn’t make sense as we all know it is better to sell in a market with less competition and I have no doubt that our buyers will continue to purchase regardless of how the seller may be feeling,” he said.

“I suspect any reduced consumer sentiment is likely to be magnified in the larger cities than in regional parts of Australia, just as the nonsensical rush to buy toilet paper has been."

Coronavirus fears certainly did not stop close to 100 people packing into a former hardware store in West Ryde for an auction on Thursday. Ten active bidders fought for the 390sqm site, which sold under the hammer for $5.2m to a local Chinese investor

Ray White Commercial Western Sydney principal, Peter Vines, said buyer confidence is still strong.

“I’m not seeing at this point any pull back or resistance. It is not an issue for many who want to buy but can’t find stock,” Mr Vines said.

Some Australian real estate heads were unable to be contacted on Thursday as they were attending the Leading Real Estate Companies of the World conference event in Las Vegas, US. The week-long event draws 2500 prestige agents from around the world.