OUR RESULTS IN A RESURGING MARKET

Sydney’s property market resurgence continued into 2020 with the first quarter of the year showing a national property value increase of 11.2% since May 2019 – the fastest annual rate of growth in over two years.

Over January, property values rose in every capital city and Sydney remained at the top of that list as we experienced our highest performing February ever with a total of 18 properties sold, and auctions at front and centre with an average of three successful auction sales per week.

The positive impact of this bounce back was evident in the record prices we achieved throughout the first quarter, selling one property for $650,000 above its reserve price, an off-market sale of $2.3m for a duplex which is now the suburb record (Concord) and witnessing strong and constant demand from buyers who flooded open homes.

BUSINESS CONTINUITY IN TIMES OF UNCERTAINTY

There is little doubt that the next quarter faces some unpredictability and uncertainty as a result of the unprecedented developments the COVID-19 pandemic has brought.

Notwithstanding the need to be highly vigilant, ample opportunity still exists for qualified buyers that remain in the game and want to purchase. The property market itself may remain uniquely safeguarded in many ways, with buffering factors including record-low interest rates that ensure an on flow of finance, bank flexibility, and a range of new financial stimulus packages announced by the government.

We can anticipate increased investment in property as the low risk, safer investment option for people, and through a number of new business procedures and operations in place, we’re confident we will tackle the next quarter ahead without significant obstacles. 

THE IMPACT OF COVID-19

COVID-19 continues to dominate the global news and daily conversations, compelling us and all people to change the way in which we live and work. Besides the obvious health risks it poses, the virus could also have a serious impact on the Australian economy. We believe that the biggest shift will be how property is bought and sold in an environment of online auctions, private appointments and virtual inspections, and we think it’s important to understand that some of the potential impacts we may see, including dispelling some of the myths.

Consumer confidence in our ability

Although consumer confidence in the market may begin to weaken, an experienced agent can help alleviate some of these concerns. We have already seen a rise in off market opportunities as we continue to list and sell amidst change. In the last week of March we sold 4 properties (totalling to 13), a tell tale sign that people remain confident in the market when connected with an knowledgeable and skilled agent who can guide them through the process of buying or selling, particularly through a turbulent and unprecedented period.

Adapting business operations to provide continuity

We’ve introduced a number of new processes to ensure we can continue to provide the same services we always have, and have been able to absorb recent changes - including government restrictions – as a result of our technology based systems.

In order to keep people safe and provide absolute continuity in how we deliver our services, we are implementing the following:

• Remote auctions through live streaming, telephone bidding and online bidding.
• Private inspections by appointment only, with a strict qualifying criteria in place.
• Virtual inspections for all properties on the market, across all online platforms.
• Thorough cleaning of all our properties.
• Ensuring clients and staff remain fit and well, including ensuring people who have recently returned from overseas are, or have, self-isolated for a two week period.

Record low interest rates with zero in sight

As our interest rates are already at record lows of 0.25% and most banks passing the savings on, economists consider that they could be cut even further to zero if economic growth in Australia starts to slow. Much of the Australian property market’s transformation so far this year can be attributed to the supply of credit, so this is welcomed news that will likely preserve our financial system and fuel an accessible credit environment that positively impacts the property market and its prices – both of which have increased by an average of 12.7% since the first of the four RBA cuts in June 2019.

PROPERTY MANAGEMENT

Our property management department continues to steadily prosper, consistently leasing properties and taking on a number of campaigns that have been previously unsuccessful.

Our property management team are adaptable and focused on innovation to deliver customer service, introducing a similar approach to our sales teams by leveraging technology to produce virtual inspection videos for all properties available, and conducting routine inspections through tailor made online systems.  

We strongly encourage all our landlords to review their current landlord insurance policy, or obtain it if they do not yet have it, in order to ensure they have a financial safety net to protect them from potential issues such as lost income.

We can’t be certain of how the coronavirus health crisis will evolve globally, or measure its true impact on our domestic economy and property market, however we will continue to act in accordance with changing advice and communicate with our valued clients with absolute transparency and adaptability, providing quality services to you, with your health and wellbeing as our paramount priority.

We’d like to take this opportunity to also remind you of the importance of remaining happy, healthy and safe during this period.