Sudden change as Melbourne vendors take auctions online as stage three restrictions start

That same afternoon, Victorian Premier Daniel Andrews announced stage three restrictions were to be put into place across metropolitan Melbourne (and the Mitchell Shire), to stem the spread of COVID-19. The move has banned public auctions and open-for-inspections, though not private inspections, for the next six weeks.

The couple, with three children, had decided to sell their three-bedroom townhouse to buy a bigger home that fits their expanding family.  They had a lot to weigh up after the announcement.

“We decided to soldier on and sell it in an online auction in August,” Ms Prior-Hocking told Domain. 

The Hockings are one of thousands of Melburnians now having to make a decision whether to sell and how they will do it over the next six weeks. 

This weekend alone, 394 public auctions were scheduled to go ahead across all suburbs. 

While vendors were making these quick decisions, especially for those selling soon, agents say they are are feeling much more positive than they were in March, when stage three restrictions were originally introduced in Melbourne as the coronavirus crisis first took hold.

Fletchers Real Estate Blackburn director and auctioneer Tim Heavyside, who is selling the Hockings’ home, said the decisions were a lot simpler than last time restrictions were introduced.

“The big difference last time was that there were so many unknowns,” Mr Heavyside said. “This time, we’ve actually got a date that we’re coming out of lockdown, so we know what to do.”

Many of his vendors were choosing to sell online, while others were waiting until after August 19, the end of the stage three restrictions, to sell under the hammer.

Ray White Victoria CEO Stephen Dullens said the majority of vendors were looking for a virtual auction.

“The vast majority are just like ‘let’s keep going’,” Mr Dullens said.

Out of 80 auctions they had listed for this weekend, two people had decided to bring their auction forward a few days, to sell before stage three restrictions kicked in.

Only one had decided to convert their sale from auction to an expression-of-interest sale.

Mr Dullens said while agents in regional cities such as Ballarat were not the subject of the tighter stage three restrictions, they were concerned about Melbourne buyers not being able to attend auctions.

Regional city agents were now looking to hold auctions online, to ensure those in lockdown were able to bid and buy, he said.

Hodges Real Estate chief executive Carmel Kellett said vendors were feeling more at ease selling while there were restrictions in place compared with March.

“The reason they are selling hasn’t changed,” Ms Kellett said. “There’s almost a level of calm and it feels like it’s business as usual because we’ve been there, done that.”

The Agency’s Victorian general manager Peter Kakos agreed.

“There is that familiarity with these types of sales online now,” he said.

He didn’t expect this second round of restrictions would have a huge, negative impact on the local market.

“I think it’s pretty much same, same now – there won’t be any massive drops or massive influxes of properties for sale,” he said. “It will stay pretty balanced.”

The Real Estate Institute of Victoria has predicted a positive outlook despite the changes to auctions.

“The forecast doom and gloom of the Victorian real estate industry by some pundits has failed to eventuate, [and] despite coronavirus the local market remains strong,” REIV president Leah Calnan said.

“The Victorian market is doing well, with the demand strongly outstripping the supply, leading to Victorian homes holding their value,” she said.

Melissa Prior-Hocking is hopeful solid prices will continue when her home of 10 years comes up for auction in early August.

“We’ve put a lot of ourselves into the house and we’ll be sad to sell,” she said. “But, one chapter closes, another opens.”