Welcome to this month’s REIP Industry Pulse.
June has seen further lockdowns across the country and states opening and shutting borders. There is one constant in all of this – there is no guarantee from week to week of anything. Like many of you, I have cancelled many flights over the last month, however, I am hoping that I will be able to have my week in Noosa at the end of July.
Last month, we asked if you thought the real estate industry had hit its peak – and 82% of you said no. The Big 4 banks agree, so it will be interesting to see where the market goes!
Over the coming months, you will start to see a new look and feel on our website and in our newsletters. We do hope you like the new format and it makes for easier reading and navigation.
REIP Market Insights
By the end of the FY21 financial year, annual property growth hit 13.5% – the highest annual growth since April 2004. House values rose by 15.6% and units by 6.8%, however, the data suggest growth may be starting to lose some momentum.
Tim Lawless and I also discuss the narrowing gap between regional Australia and the Capital cities, continued low levels of new listing stock and the uplift in rental values.
We’re excited to announce our new partnership with Kylie Walsh from REGROWTH. The team at REGROWTH specialise in helping agents maximise their potential through professional development. Along with key areas of growth, they also provide coaching to help you get there. We look forward to bringing training sessions with Kylie to our members starting in August, so watch this space!
The Real Estate Voice – we write for real estate and take the hard work out of writing any content you need – whether it be articles for your blogs, newsletters or social media posts, profiles for your team or quarterly market reports, we write for real estate so you don’t have to. With a range of content solutions, discover how you can build your agency brand with the right option to suit your business.
News & Education
On the 23rd of June, Kevin Anderson MP, Minister for Better Regulation and Innovation advised that the NSW Government had started the process to appoint the first Property Services Commissioner.
The first priority of the Commissioner will be to make recommendations on how to improve and streamline services delivered by the regulator to agents, property service professionals and consumers.
This is great news for our industry and an encouraging step towards improved collaboration across the entire real estate sector.
The Property Council of Australia has labelled the latest Federal Government Intergenerational report a ‘wake-up call’ for policymakers on the importance of population growth and increased productivity to Australia’s economy.
The Property Council has been calling on governments to upscale quarantine and border processing capacity to avoid the long-term economic consequences of idling population growth.
The report states that amongst other plans, we need to be investing in the right infrastructure, fixing housing affordability, reforming archaic planning systems, phasing out stamp duty, and getting zoning right.
Record-low interest rates and surging property prices in Australia have fuelled buyers’ fear of missing out (FOMO), since the pandemic was declared in March 2020.
But with the cost of renting closing in on that of standard mortgage repayments and demand for housing stock continuing to outstrip supply, TINA (there is no alternative) is fast becoming an equally motivating factor.
Surging property prices that are fuelling the national and multinational housing affordability crisis are leading many first-time homebuyers to a trusted financial source: The Bank of Mum and Dad.
Analysts note that in the March quarter, 60 per cent of first-home buyers received substantial financial assistance from Mum and Dad and DFA suggests that the Bank of Mum and Dad has become the country’s ninth biggest lender, behind Suncorp.