There will be a property market on the other side

PHOTO: The shutting of auctions sent a shiver through the market. Jessica Hromas

It’s too early to call out silver linings in the dark clouds of COVID-19. But disruption does create opportunity.

The move to ban public real estate auctions was inevitable. Even so when it finally came the announcement by Prime Minister Scott Morrison sent a jolt through the property sector.

Public auctions account for only a small proportion – around 11 per cent – of the total in residential real estate listings. Most properties change hands through private treaty.

Auctions though are the most visible face of the market, a weekly barometer on price and clearance rates.

Scomo’s ban on barbecues won’t stop us eating sausages. Neither will cancelling public auctions crash the real estate market. Transactions will certainly slow. That can helpfully put a floor under prices.

The auctions ban will accelerate a shift to trading in homes through digital platforms. First movers such as Sydney auctioneer Damien Cooley were already there. Private treaty deals will increase.