The Real Estate Institute of Victoria has slammed the Victorian State Government for its continued ban on in-person inspections, claiming the decision will “effectively keep the property market shut down for an uncertain period”.
Shortly after Premier Daniel Andrews today revealed strict lockdowns would extend a further two weeks, the REIV implored the government to rethink its ban on one-on-one property inspections.
They note the continuation of the ban means people who desperately need to buy or lease a property will have to make that decision ‘sight unseen’.
“Before the introduction of Stage 4 restrictions, people could visit a property one-on-one with the agent,” the REIV said.
“Private inspections are done with all safety measures including requirements for surface cleaning, gloves, masks, and contact details and are 100 per cent supervised.
“REIV members took these extensive precautions long before they were recommended by government including turning on lights and opening cupboards and internal doors prior to the inspection.”
Stating there had been a “lack of genuine consultation”, the REIV went on to note initial liaising with the real estate sector was restricted to a roundtable with over 35 industries.
“Only a handful had an opportunity to put their case forward,” the REIV said.
“While the REIV had a separate briefing later, and provided alternatives and solutions to ensure that people can buy, sell and lease safely, all these suggestions have been ignored.”
REIV president Leah Calnan said the continued inspection ban was compounding financial stress on Victorians and the Victorian economy.
“The delay in allowing private inspections means that many people will be unable to make the move they so desperately have to make or commit to a property without seeing it first. That is unacceptable,” she said.
Meanwhile, REIV CEO Gil King said private inspections were far safer than going to the supermarket.
“No one watches me there and wipes down the Corn Flakes packet that I pick up and then return to the shelf,” he stated.
In a formal statement, the REIV went on to note the real estate industry had effectively been served a ‘double whammy’, with the extension of the rental moratorium compounding problems for the sector.
“While this was not unexpected, landlords have virtually no relief while tenants get substantial support,” the REIV said.
“With many reduced rental agreements due for re-negotiation this month, the REIV is advising its members to refuse to negotiate rent reductions, forcing every request into the dispute system, a system that has already failed to cope with the caseload.”
A survey of property managers conducted by the REIV shows that about three quarters of reduced rent agreements have been achieved outside of the dispute system. With a backlog of over 4000 cases, REIV says VCAT is not equipped to resolve disputes.
“The lack of understanding by the Victorian government regarding the operations of the real estate sector is evidenced in almost every facet of the way which it has handled the restrictions and the moratorium,” the REIV said.