Brighter Buying

Market update: Government backtracks on open for inspection curbs

by Richard Parker, Sales Manager 16 April 2020

Wow! It’s been a crazy seven days in real estate!

Last Thursday the Victorian Government pulled the plug on property inspections of occupied homes, only to reverse the order four days later – following heavy lobbying by the real estate industry.
Whilst no reason was provided for the backflip, Real Estate Institute of Victoria president Leah Calnan told The Australian Financial Review on Monday.
“It just seems that perhaps there was the practical aspect of what real estate agents were already doing that wasn’t property understood.”
Ms Calnan also suggested the short-lived restrictions may have been an effort by the state government to restrict the real estate industry over the Easter break.
In rental market news, while rents rose across most major capital cities in the first three months of 2020, that trend is expected to be short-lived following a rise in rental listings. The surge took place in the last two weeks of March after the country went into lockdown.
According to the Domain Group, in Queensland, the number of new rental listings jumped by 21 per cent in the last 4 weeks and 18 per cent year on year.
Properties that were once let out for short-term holidays (e.g. AIRBNB) have flooded the market seeking long-term tenants.
Rental supply is likely to increase further in the coming months, “putting tenants in the driver’s seat,” Domain Group senior research analyst Nicola Powell said.
“Some landlords have moved property from short-term holiday leases to the long-term rental market during the coronavirus pandemic. Some tenants may also opt to reside with family while our lives are impacted by social distancing, job-security fears and economic uncertainty.”
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