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Industry bodies the Real Estate Institute of Victoria, and the Urban Development Institute of Australia have voiced concerns about the Victorian governments roadmap to what they deem to be Covid-normal.

Lockdowns in Victoria the hardest hit state of Australia when it comes to Covid-19, has meant that there has been a restriction on display suites and 1-on-1 inspections for construction pipelines, not to mention the effect on sales of construction projects.

Many industries are suffering during these tight lockdown laws in Victoria including the construction and real estate industries. With restrictions hopefully reducing on 28 September and 26 October respectively, the number of auctions compared to same period last year are down considerably. 28 on the weekend compared to 765 last year. Of those 28, 2/3’s were withdrawn driving the clearance rate to a low 33.3 percent.

Both industries will be restricted until we get back to Covid-19 normal, and they reach determined trigger points, to move onto the next step. See the table below for a full explanation of measures and trigger points in both Construction and Real Estate in Victoria’s 4 step plan.

Melbourne Metro Covid Construction Roadmap

StepSpecific MeasuresDate/Trigger Point
First StepHeavily Restricted. Early stage land development: 10 workers per hectare. Small-scale: 5 workers per site. Large-scale: 25% baseline or 5 workers, whichever is greater.13 Sept
Second StepRestricted. Early stage land development: 20 workers per hectare. Small-scale: 5 workers per site. Large-scale: 85% baseline or 15 workers with a dedicated Covid-Safe monitor on site.28 Sept – 30 to 50 cases a day in a fortnight
Third StepCovid-Safe Plan. No restrictions per site. Large-scale: Dedicated Covid-Safe monitor on site.26 Oct – less than 5 cases with unknown source in a fortnight
Last StepCovid-Safe Plan. Large-scale: Dedicated Covid-Safe monitor on site.23 Nov – no new cases for a fortnight

Melbourne Real Estate Roadmap

StepSpecific MeasuresDate/Trigger Point
First StepHeavily Restricted. Services related to property settlement or commencement/end-of-lease (including removalists) that cannot be done remotely are allowed.13 Sept
Second StepHeavily Restricted. Services related to property settlement or commencement/end-of-lease (including removalists) that cannot be done remotely are allowed.28 Sept – 30 to 50 cases a day in a fortnight
Third StepRestricted. Limited activities allowed including outdoor auctions (with caps) and private inspections by appointment.26 Oct – less than 5 cases with unknown source in a fortnight
Last StepCovid-Safe Plan23 Nov – no new cases for a fortnight

^ Source: Victoria State Government

All restrictions will be removed when the trigger points in the table are reached.

Premier Daniel Andrews said the sacrifices made by the people of Victoria are making a difference in driving Covid levels down.

This is what the Premier had to say in detail:

“The first step will mean modest changes. Small improvements we can make, to make life a little bit easier, without giving away any of Victorians’ hard-won gains,” Andrews said.

“Regional Victoria, currently in stage 3 restrictions, will be able to jump to the second step of reopening. Melbourne metro will move to the second step on 28 September.

“Under the second step in metropolitan Melbourne, we’ll get more people back to work—some 100,000 workers across construction, manufacturing, and landscape garden and maintenance workers who operate alone.

“With clear and articulated case targets, we’re creating “trigger points” for review for our public health team—and giving Victorians even more insight into how we’re tracking.”

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Many industry bodies believe that this roadmap is simply another nail in the coffin for employers and employees. This virus will be with us for many years to come, so we are better off trying to keep the economy open and moving during these hard times, keep workplaces safe and move forward.

A Vaccine may be years away and shutting down business activity will not bode well for the economy.

The Real Estate Industry which is the second highest contributor to state government revenue, via stamp duty, had a bone to pick with the Premier on this roadmap. They argued that operations in the Real Estate , construction sector, should not be painted with the same brush as operations in a Supermarket. They argue it is much safer than going to the supermarket, where the Virus can spread rampantly.

Gil King the REIV chiel executive believes that inspections should start sooner. Without these, buying and leasing could not move forward, leaving many without shelter and pushing many investors to the brink of collapse.

UDIA Victoria chief executive Danni Hunter believes that the construction industry can deal with the virus and keep in under control, and keep cases at a minimum.

He says..

“While there is inevitably deep disappointment that our sector cannot return to work immediately, the building, construction and development industry remains committed to working diligently toward a full reopening, in partnership with the government,” Hunter said.

“As well as gaining clarity for members, we are also advocating hard for the reopening of display homes and sales suites to keep the sales pipeline flowing.”

I say..

“With the majority of cases now isolated to health care workers and those in the Aged care sector, workers & the aged, it’s ok to keep these restricted, but let the rest of the 5 million people in Victoria get back to normal sooner than this roadmap.”

“Surely you can have economic recovery whilst still looking after the vulnerable.”

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