Melbourne property market paused following a reintroduction of bans on auctions and open homes

Online auctions and virtual inspections will again become the norm in Melbourne as property market restrictions are reintroduced.

McGrath Estate Agent principal Todd Brandon carrying out a virtual house auction.

House sales in Melbourne will once again become virtual after public auctions and open homes were suspended as the city battles a second wave of coronavirus infections.

Conditions will mirror those seen in April after the Victorian government announced a return to stage-three lockdown in Melbourne and Mitchell Shire in response to several days of record COVID-19 infections.

REA chief economist Nerida Conisbee said listings were once again likely to fall as sellers became nervous about what the next six weeks would hold.

“We expect there will be fewer listings in the short term, particularly if open for inspections and on-site auctions are curtailed. More broadly, economic growth in Victoria will be challenged,” Ms Conisbee said.

No change will occur in regional Victoria, which will still be allowed to operate as normal with social distancing measures and caps of 20 people at open homes and auctions.

The number of auctions fell in April as nervous vendors pulled their homes after the federal government imposed national restrictions on property auctions and open homes in March. While numbers had been recovering, Saturday will test the city’s resolve, with some sellers reportedly scrambling to pull their auction forward to Thursday evening.

Real Estate Institute of Victoria president Leah Calnan said local agencies were well versed in what it meant to operate under restrictions. “Victorian real estate has always been more than willing to do anything it can to help fight the coronavirus pandemic, the essential transaction of property and shelter will go on in a safe and controlled manner,” Ms Calnan said.

“REIV members across Victoria stood up to the plate when stage-three restrictions were enforced earlier this year. We are well-drilled and ready to take on the next six weeks of restrictions.”

Several agencies had already started moving back to online selling methods prior to Wednesday’s announcement of stage-three restrictions.

National network Ray White cleared 62 per cent of all auctions held last week in Melbourne, many of them were held online. “Our members are experienced in trading through a contact-conscious environment and holding online auctions plus private inspections,” Ray White managing director Dan White said.

While the broader property market remained fairly resilient to the economic effects of the coronavirus, Melbourne had felt the pressure on prices more so than any other capital city.

According to CoreLogic, prices fell 2.3 per cent in the quarter ending June 30, led by a tumble in the top end of properties.

Ms Conisbee said the city’s property market would likely bounce back quickly if cases were quickly contained, following the lead of Australia’s other capitals.

Two weeks ago, Melbourne agents had been preparing to see the number of people allowed at public auctions rise from 20 to 50 people but those plans were cancelled as case numbers rose.