PHOTO: Melbourne
Real estate agents are bracing for a severe cash flow crunch over the next six weeks as sales are shut down as part of the level four restrictions imposed in the greater Melbourne area.
Starting midnight on Wednesday, real estate activity including on-site auctions and private open homes will be banned except for settlements that are already under way. Online auctions and inspections are allowed. Those who are scheduled to move homes are also allowed to proceed.
Real Estate Institute of Victoria president Leah Calnan said the lack of cash flow coming through the next six weeks would put a strain on the industry.
“I think the introduction of tighter restrictions places an enormous amount of pressure on all businesses, including the real estate industry,” Ms Calnan said. “We’ll certainly be feeling the impact.”
Macedon Ranges-based veteran selling agent John Keating said the new restrictions could lead to a shakeout in Victoria’s real estate industry, not just in greater Melbourne area.
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