REIP – Inside Real Estate December 7, 2022

We are now only 17 days away from Christmas and I know that many of us are looking forward to the break with family and friends – particularly after the tumultuous year we’ve all had.

Yesterday, the RBA increased the cash rate by a further 25 basis points, taking the cash rate up to 3.1 per cent and causing more pain for mortgage holders with variable loans. The rate hikes have not only had a significant impact on the property market, but we’re also seeing consumer spending decrease. We’ll need to collectively hold our breath and wait to see if the RBA continues the rate hikes in February next year.

Renters are still feeling the pinch and so far, there has been little relief for them. Vacancy rates are still low across the country and the national rental vacancy rate held last month a record low of 0.8 per cent.

On a more positive note, I’ve been following with interest the 6-month global pilot program of a 4-day work week which has been deemed a resounding success. The average company revenue rose by 38%, productivity and performance have been rated a 9/10 and improvements to both mental and physical health have been reported. Of the 33 companies who participated, none of those who responded to a follow-up survey are planning to go back to a 5-day working week. It’s a clear indication that the ways we work are forever changed and it really is a matter of adapt or fall behind.

Also worth a mention is the Socceroos’ recent performance on the world stage. It was wonderful to see their determination, commitment, and passion to bring their best every day. It’s a reminder to us all that if we focus our energies in the right place, great things can happen. The beginning of summer also signals the beginning of our cricket season and I know I’m looking forward to getting behind our teams!

Muval has recently released some interesting stats that reveal migration to Perth is continuing to gain traction, primarily from the Sydney and Melbourne markets and that 66% of moves are occurring between October-March.

Other data of interest this month is from Sorted Services, who have confirmed many of the rental market trends reported by the media. Their data is showing a rental increase of approx 13% from 2021 to 2022, an increase in lease renewals of 30% and a decrease in new leases of 20%.

Lastly, a huge congratulations to 1060 on their successful USA launch. A well-deserved reception and I can’t wait to see 1060 adoption skyrocket!

This is our second last newsletter for the year, so until next fortnight stay connected.