Whilst national home values have risen in April, defying widespread predictions of a property market slump due to the coronavirus epidemic, the NSW Health Minister, Brad Hazzard, has announced restrictions on open house inspections and on-site auctions will ease from next weekend.
The easing of restrictions come with the standard warning that there is no place for complacency, the impact to NSW’s state finances with a substantial decline in stamp duty taxes may have driven the changes.
Treasurer Dominic Perrottet said “Choosing a home is one of the biggest decisions anybody makes, and easing the restrictions to ensure people can more easily inspect, buy or rent a property is an important step for NSW.”
“The real estate industry has been adaptable in transitioning to online auctions, property inspections by appointment or online, and now as we make the move back to a more normal mode of operation we must ensure safety measures such as social distancing remain a key part of the process.”
Will stamp duty be removed and replaced by land tax?
With the rumour mill running high on the potential removal of stamp duty, it’s likely the NSW government has realised if they don’t push the property market along quickly, the ramifications will reignite the ‘cure isn’t worse than the virus’ conversation.
A few days ago, the NSW opposition gave their cautious support to the Berejiklian government's push to abolish stamp duty and payroll tax in a bid to revive the state's economy following coronavirus. As unemployment is expected to hit 10% by the end of the year, NSW Treasurer Dominic Perrottet proposed the scrapping of ‘inefficient taxes’ which included stamp duty and payroll tax. However, he didn’t clarify the potential introduction of land tax to replace the revenue that stamp duty generates to the state’s economy.
How open homes and on-site auctions will be conducted
“The community has done an outstanding job in limiting the spread of COVID-19 and we need to make sure we continue to exercise vigilance and care,” Mr Hazzard said.
“Real estate agents should limit the number of people viewing a property and attending an auction, follow stringent cleaning and safety guidelines, ensure clients do not touch surfaces and always have hand sanitiser available.”
Key health guidelines include:
ensure physical distancing of greater than 1.5m is maintained
promote good hygiene on premises and at auctions including hand sanitiser
use digital platforms where possible to discourage physical contact
keep detailed contact records of people attending open homes and auctions
ensure people with any symptoms of illness do not attend a property
manage the number of people entering small spaces
consider extended times for open house viewings and inspections
use outdoor venues for auctions wherever possible
if auctions are held indoors, use large venues where physical distancing between household groups of one person per four square metres is possible.
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