The federal government's auction ban doesn't necessarily mean the real estate industry is going to close, according to the Real Estate Institute of Australia (REIA).
In order to curb the spread of the coronavirus, Prime Minister Scott Morrison announced a series of restrictions on public gatherings, including auctions.
"In the retail space, the auction houses, the gatherings in the auction rooms, which can no longer continue.
REIA President Adrian Kelly said before Morrison's speech, REIA has already urged real estate agents to explore other strategies for continuing their business.
"While this is not the status quo, there are opportunities for any real estate agent looking for them, there are still ways to conduct inspections and sell property at auction," he said. .
Read also: Busy auction markets in the middle of COVID-19
Kelly said that local real estate institutes will contact their agents to help them conduct their business.
Following Morrison's announcements, the Real Estate Institute of Victoria contacted Consumer Affairs Victoria to clarify the scope of the restrictions.
In a statement, REIV President Leah Calnan said that appointment inspections for sales and rentals and auctions through online methods could continue.
"The Victorian real estate sector is a flexible, innovative and resourceful industry capable of dealing with any problem," said Calnan. "Many agencies have already invested in and tested online platforms for property auctions in the past few months, and homes will continue to be sold in Victoria."
Calnan said interest in the Victorian real estate market remains strong and local agents are starting to embrace the technology and explore workarounds amid the restrictions.
"Local agents are turning to technology to meet the high demand in Victorian real estate, with virtual reality inspections and transactions made over the phone and electronic signing of documents over the Internet becoming commonplace", said Calnan.
In a report published in The Australian Financial Review, Tim Lawless, research director of CoreLogic, said that although the ban will likely see moderate market activity, house prices will remain stable .
"The auctions represent only 11% of all registrations nationwide, so this is only a small part of residential real estate transactions," he said. declared. "I think prices will be largely isolated, although there is clearly a downside risk, particularly with the increase in unemployment rate forecasts."
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