stage 4 restrictions in the state of Victoria
The implementation of stage 4 restrictions in the state of Victoria is set to have a major negative impact on Victoria’s economy. The unprecedented curtailment of economic activity and people’s movement restrictions means firms will suffer from a lack of clientele. In the previous lockdown measures imposed in the state of Victoria, more than 250,000 people have lost their jobs. That is an indication that businesses don’t have money to pay their employees. Therefore, the implementation of stage 4 restrictions is a red flag to most business people in the state of Victoria. The stage four restrictions will be felt across all sectors, such as the real estate and manufacturing sectors. The real estate sector is one of the sectors that will be hard hit by the Covid-19 pandemic restrictions.
Impact of stage four restrictions in the real estate sector
The stage four restrictions dictate that large scale construction projects be reduced to 25% of their typical workforce. The restrictions also permit a maximum of five workers for small construction projects. No new projects are allowed under the current Covid-19 stage four restrictions. Therefore, the real estate sector will experience a drastic drop in growth. The reduction of employees lengthens the time required for completing large construction projects. The effect will be felt by all stakeholders working in the real estate industry. Real estate property developers, real estate consultants, contractors, civil engineers and interior designers will be hard hit by the stage four restrictions.
With the extension of overnight curfews in the new restrictions, most retailers have been forced to move online. Most Victorian residents have resorted to purchasing most of their daily commodities from online retail stores. Therefore, on-ground retailers have been forced to shut down their premises. Property owners have found themselves at the receiving end of on-ground retailers’’ actions. Their client base has significantly dropped. Despite their frantic efforts to woo their clients by reducing monthly rental fees, many retailers and small business owners have moved online. They still pay high property taxes despite lacking tenants. Property owners in the residential space are also feeling the effects of unemployment. They have been forced to reduce their monthly rental fee to accommodate those who have lost their jobs.