Expert economist and real-estate agents say the suppressed Melbourne real estate market will burst out of the blocks once pandemic restrictions lift. We see the data too, and all evidence of buyer demand leads to a hot spring once restrictions lift.
Those in the real estate industry were hopeful for a spring period where most regular real estate activity could resume. But unfortunately, this couldn’t happen. During his 13th of September press conference, Premier Daniel Andrews announced real estate inspections and auctions could not resume until October 26.
Fortunately, things are looking more optimistic with daily case numbers coming down in the worst affected parts of the state.
How the Pandemic is Impacting Melbourne Real Estate
The industry has been hit hard by what is essentially a loss of the prime spring selling period. At Plezzel, we’ve seen this impact in a number of ways:
- Sales and rental listings have been withdrawn from the market and are down 50-60%
- Open home attendees are down 95% due to lockdown measures
- Investor enquiries are down 40% as increased vacancy periods impact investor sentiment.
However, some signs offer cause to be optimistic about the near future. We’ve also seen:
- A consistently large volume of online enquiries, indicating pent up buyer demand
- Homeowner enquiries have increased by 20%, indicating future selling opportunities.
Agents can expect a reduced spring selling period in Melbourne. However, we anticipate a burst of listings to hit the market from homeowners who have been prevented from selling as normal since July.
Leverage Digital Marketing Effectively
Digital marketing is invaluable for reaching prospects and getting people interested in properties. This is especially true given how much more time we’re all spending on Facebook, Instagram, Google and other online channels during lockdown. The right techniques can capture the attention of users online when they are actively looking for property and when they are just browsing. To find out more click here.
Private Inspections Will Be Key
Plezzel’s private inspections enable buyers to book directly off Facebook and Instagram. This makes it easy to register to inspect. We can also help you reach more prospective buyers and tap into that dormant buyer demand. With your digital marketing game strong, you can make the most of what’s going to be a compressed spring selling period.
Since restrictions will be lifted in a staggered fashion, private inspections are likely to be the norm for the next couple of months. The logistics of organising multiple private inspections and generating interest can be challenging. Agents should ensure they are adequately prepared and have the right tools and help to manage the process.
Impact to Real Estate Businesses
These restrictions impact Real Estate businesses operating in Metropolitan Melbourne. Staff are unable to work in the office with remote working the only current option. We have received calls from offices indicating a sense of when will this end? When can we start operating again? No doubt there will be financial and mental health impacts to staff and business owners. We urge you to seek help and support regarding mental health. Regular exercise and maintaining a normal schedule is key. Also check in with staff with a simple “R U Ok”?
The COVID-19 pandemic has had a tremendous impact on our lives in Melbourne, both on a personal level and in business. Many industries have experienced significant disruptions as we work together to overcome the spread of this virus. Fortunately, things are looking more optimistic with daily case numbers coming down in the worst affected parts of the state.
Contact Plezzel Today
At Plezzel, we’re digital marketing experts specialising in real estate. To find out more about how we can help you generate more leads, please get in touch with our team.