Half Yearly Report - 2020.

Six months into 2020

When we last reflected on our first twelve months of DIB CHIDIAC in December 2019, we talked about growth, results, and success encapsulating the year that was. Looking back on the last six months of 2020, undoubtedly the year so far has brought historic change to the forefront everyone’s personal and professional lives, including the real estate industry.
 

As we consider the unpredictability of new laws and restrictions that were placed on the market, then eased again, over the past few months, 2020 can only be defined as a period of innovation, commitment to continuity, and resilience.

Where we started and how it quickly evolved

The year began with the residual high of sharply increasing price growth as the wave of momentum continued for the Sydney market which displayed clear signs of an upward trajectory. We facilitated 9 auctions over February alone, with unmatched demand and growth that was sure to set the scene for the coming months.
 

Once COVID-19 hit our shores, Australia’s unprecedented restrictions from 20 March extended to a temporary ban on public open home inspections and auctions. This immediately shifted the way in which the real estate industry continued to operate, and generating an immediate uncertainty that shook the confidence levels of some, halted stock levels and kept appraisals momentarily at bay.
 

It is important to note that low stock levels have truly cushioned the impact on the market. It has supported and demonstrated resilience throughout this period, keeping property prices afloat and buyer competition strong despite unforeseen changes.

How we performed

We rapidly adapted to the need to change and immediately commenced showing properties privately by appointment only to a small number of qualified buyers. We also conducted live auctions from online platforms as we leveraged the availability of technology to connect buyers and kept moving forward.
 

Both strategies proved hugely successful, and what remained clear during this period was that vendors were more concerned than purchasers. We continued to consistently sell to an ample pool of prepared buyers who saw value and took advantage of the opportunities that were available.
 

Our sales figures of 30 properties from mid March until the end of the lockdown period demonstrates how little an impact such large changes had on our overall results during this time, and over the four week March-April period, we ranked number one and higher than the market average across multiple performance areas, including:

• Highest number listings sold in our local area (20);
• Highest number of new listings in our local area (32);
• An average sales price $300K higher than the market average of $1.2M; and
• More property page views and enquiries compared to the wider market average.

Where we currently stand

In a post-restriction environment, we’re seeing numbers flourish once again, appraisals back on track and stock steadily higher than it was in the first quarter of 2020, despite being lower than usual in the broader market.
 

The market has displayed significant strength in deflecting any long-term impact. Many sellers have witnessed positive results first hand which has been adequate in restoring their confidence in the market, and reinforcing their certainty that the worst is over.
 

Understandably, others are apprehensive about the economic impacts potentially yet to be felt once the JobKeeper payments cease in September, and loan deferrals expire. However, the resilience of the market and continued strength we have seen in the last couple of months despite the challenges faced by the market present no immediate reason for concern, as we continue to rely on market data as it is published to support this assertion.
 

Key takeaways from May and June show promising results and announcements, including:

• a 22.4% rise in new listings
• the total volume of national sales up 20.4%
• 67.3% Sydney auction clearance rate, higher than this time last year
• the announcement of the new HomeBuilder grant
• a further 10,000 First Home Loan Deposit Scheme places from 1 July
• 500,000 mortgage repayments worth a total $172B deferred

Whilst some uncertainties may remain ahead, we will continue to support people on their property journey without hesitation, and keep you updated on the six months ahead as it unfolds.
 

One this we know for sure is that the market in which we operate in remains hugely undeterred as one of the highest demand pockets of Sydney. Concord alone represents 2,052 visits per property compared to the NSW average of 1,006, and our number of sales reaching 70 properties so far this year brings us to a total of 177 sales since opening our doors 18 months ago.