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REIANEWS
ISSUE 85: DECEMBER 2018
MERRY CHRISTMAS AND A HAPPY NEW YEAR
F R O M A L L AT T H E R E A L E S TAT E I N S T I T U T E
OF AUSTRALIA.
REIA NEWS WILL BE BACK IN FEBRUARY 2019.
IN THIS ISSUE
N E W D I R EC TO RS
R E I A B OA R D 2 0 1 9
FINALISTS FOR THE REIA
N AT I O N A L AWA R D S F O R
E XC E L L E N C E 2 0 1 9
M A R K E T S N A P S H OT
MORE WANT TO FIND OUT ABOUT PROMOTING YOUR BRAND IN REIA NEWS? CONTACT REIA ON 02 6282 4277 OR AT REIA@REIA.COM.AU FOR FURTHER INFORMATION.
Mr Adrian Kelly
REIA President
PRESIDENT’S
REPORT
WELCOME
FROM REIA’S
NE W PRE SIDEN T
Welcome to the last edition of REIA sales, property management, buyers be recognised as the best in Australia.
News for 2018 and the first for me agent, marketing and innovation. I wish all contestants for the national
as the incoming REIA President. awards the vey best for next March and
These annual awards are an industry
look forward to meeting them in Perth.
By way of introduction I was born and highlight. They acknowledge the
raised in Hobart and have worked in hard work and effort by individuals I hope you enjoy reading this
the Tasmanian real estate industry in achieving the best results for month’s edition.
since 1990. I am the founder and CEO their clients and encourage and
Next year will be an important one
of an independent agency comprising promote excellence and best practice
for the industry with the upcoming
seven sales and property management in the real estate profession.
Federal Election and the public debate
offices. I am also a Board Member of Importantly, the winners at the state continuing on taxation of housing and
the Real Estate Institute of Tasmania level have the opportunity to compete affordability. REIA will continue to be
and its immediate past President. against their peers at the REIA National a strong advocate for the retention
The focus of this month‘s REIA News Awards for Excellence in Perth on of negative gearing, will continue to
is on the annual awards the REIA 21 March 2019. It is the ultimate lobby for taxation reform at all levels
state based member organisations accolade to be a national winner. Being and for the appointment of a dedicated
have recently held recognising a national winner brings with it the Minister for Property Services.
recognition of being the best of the best.
the best performers across a wide From the REIA we wish all readers
spectrum of categories including I am encouraged by the increasing and their families a safe and happy
residential, commercial, rural, number of professionals that strive to festive season.
Mr Adrian Kelly
R EI A P R E S I D EN T
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REIA ELEC TS NEW PRESIDENT
including hotels and motels. He is also Mr Kelly said next year will be an
an accomplished auctioneer having equally important one for the sector
spent a number of years as a full-time with the upcoming Federal Election
auctioneer within his own business and the public debate continuing on
specialising in plant and equipment taxation of housing and affordability.
and asset sales for local councils, “REIA will continue to be a strong
finance companies among others. advocate for the retention of negative
Adrian is a licensed Estate Agent, gearing, will continue to lobby for
Adrian Kelly Board Member of the Real Estate taxation reform at all levels and for the
Institute of Tasmania (REIT) as well appointment of a dedicated Minister
President – Real Estate for Property Services,” Mr Kelly said.
Institute of Australia as the immediate past President of
the REIT having served in that role Robyn Waters representing the
The Real Estate Institute of for four years. He also sits on the Real Estate Institute of Victoria
Australia (REIA) has welcomed Property Agents Board which is the (REIV) and Independent Director,
the election of a new President, regulatory authority in Tasmania and Chris Mourd were also farwelled
Adrian Kelly from Tasmania. is an Associate of the REIA. He is the standing down at the end of
Mr Kelly was elected as the 45th seventh President to be elected from their term on the REIA Board.
President of REIA, the national Tasmania and the first since Peter Adrian Kelly paid tribute to Robyn
professional association for Australia’s Bushby who served from 2012 to 2014. Waters and Chris Mourd thanking
real estate sector at the Annual them for their time and dedication to
In accepting the role, Mr Kelly
General Meeting held in Canberra on the profession. Adrian Kelly welcomed
thanked out-going President, Malcolm
13 December, effective immediately. the incoming Board Director –
Gunning, from New South Wales, who
Hayden Groves from Western Richard Simpson representing the
has held the position for two years.
Australia was re-elected Deputy Real Estate Institute of Victoria.
President for another 12 months. “Malcolm has provided excellent A new Director will be appointed to
stewardship of the organisation represent the Real Estate Institute
Adrian was born and raised in Hobart
since 2016 and during that time of Tasmania in coming weeks.
and has worked in the Tasmanian
he has achieved much in ensuring
real estate industry since 1990.
that our members have a strong
He is the founder and CEO of View
national voice,” Mr Kelly said.
Real Estate, an independent agency
comprising seven sales and property “On behalf of the REIA Board and
management offices across Tasmania. the REIA Secretariat, we extend our
Adrian’s real estate experience sincere thanks to Malcolm for his
includes residential sales, property professionalism and commitment
management and commercial sales to the role during his tenure.”
R E I A B O A R D O F D I R E C T O R S F O R 2019
Elected during the REIA Annual General Meeting on 13 December 2018, REIA Board
Directors representing state and territory members Real Estate Institutes are:
Hayden Groves Craig Bright
Deputy President REIA Real Estate Institute of Australian
Real Estate Institute of Capital Territory
Western Australia
Hayden Groves has been Deputy President Hayden owns and operates an Craig Bright has been awarded an
of REIA since 2015 and has also served as established independent Fremantle Associate Diploma with The Real Estate
Chair of the REIA Finance Committee. based agency with a staff of 20. Institute of Australia and is also a
Hayden was re-elected as REIWA Along with his triennial, Hayden holds an registered Associate with the Real Estate
President at the October 2017 Council honours degree in politics, has studied Institute of the ACT and NSW. In addition
meeting, after having served for a law and is a licensed auctioneer. to this, he has extensive experience with
two year term from October 2015. many of the major projects within the ACT.
As the immediate past president of
Hayden has served on the REIWA Council the Real Estate Employer’s Federation Craig has also been a member of
since 2010 and as Deputy President since of Western Australia, Hayden has the ACT Housing Joint Venture Panel
October 2013. Prior to this he served a particular interest in employer/ and past representative of the ACT
as the Fremantle Branch Chairman. employee relations and worked to Business Consultative Panel.
As REIWA President, Hayden ensures ensure agents remained exempt from He is committed to professional service
that the Institute continues to serve registering employment contracts and has an intimate knowledge of
its members, and the public, by with eastern states’ based unions. the ACT market. Craig is well known
offering services via reiwa.com, the As REIWA’s representative on the REIA throughout the Canberra Region
‘go-to’ property portal in Western board, Hayden remains committed to and has an extensive client network
Australia. He also promotes agents’ developing strategic policy positions with which he works very closely.
professionalism in the community and that benefit the real estate industry, • Holder of course award Real Estate
REIWA’s important advocacy efforts. its stakeholders and the community. Sales CIT Advanced Certificate in
Business (Real Estate Agency)
• Certificate of Registration under the
ACT Agents Agents Ordinance 1968
»» article continues
»» continued
Leanne Pilkington
Real Estate Institute of New
South Wales
• Holder of Corporation Licence with the Leanne is Managing Director of leading Her 35 years of experience covers the full
Real Estate Services Council of NSW New South Wales boutique real estate spectrum of real estate services: residential
• Holder of Personal Licence with the group Laing+Simmons, and one of the sales, property management, retail
Real Estate Services Council of NSW real estate industry’s most respected management, commercial leasing, property
under the provisions of Property and sought after commentators. development and franchise management.
Stock and Business Agents Act 1941 She’s the only female Managing Director in Leanne is a Licensed Real Estate Agent,
• Holder of Associate diploma with the real estate franchising in New South Wales completed her Ass Dip Valuation
Real Estate Institute of Australia Ltd and one of only a handful in Australia. at UTS, and a Masters Degree in
• Holder of various qualifications Addressing the gender imbalance, Business Administration at the Sydney
through the Real Estate Institute of empowering women agents and pushing Graduate School of Management.
the ACT as well as previous member towards industry-wide professionalism She has been a Finalist in both the
of Real Estate committees are all key passions for Leanne. Telstra and Optus Business Women
• Member of the ACT Housing She continues to pioneer industry firsts awards, was awarded the REB Thought
Joint Venture Panel such as establishing a womens real estate Leader for 2017, and is the current
• Representative on the ACT networking group, and introducing President of the REINSW. Leanne has
Business Consultative Panel counselling and employee assistance served as a Director on the Real Estate
• Past President and current Director of programs for Laing+Simmons team Institute of Australia Board since 2017.
the Real Estate Institute of the ACT members, while serving on industry
• ACT Representative on the National bodies and championing the growth of
Board of the REIA since 2016. professionalism in the industry at large.
»» article continues
»» continued
Diane Davis Brett Roenfeldt
Real Estate Institute Real Estate Institute
of Northern Territory of South Australia
Diane is the President of Real Estate Brett commenced his career in specialist training covering many aspects
Institute of Northern Territory and has 1979 and established a boutique of Real Estate practice from auctioneering,
been a fully Licensed Real Estate Agent agency operating in the Eastern sales skills, and strategic planning.
for 22 years. She now holds the position Suburbs of Adelaide for 15 years. LJ Hooker International Operations
of Branch Operations Manager of Elders He is a licensed agent and auctioneer contracted his services for five years,
Real Estate. Diane is passionate about the and a current REISA Board Director providing specific in-house training
industry and is an Industry Representative having previously served on the Board. for their network Australia Wide.
Member on the Agents Licensing Board Brett has served previously for 10 years on
(ALB) as well as President of the Real Estate In 1994, he established South Australia’s
first fulltime freelance auctioneering the Society of Auctioneers and Appraisers
Industry Board of Management, Deputy Board as President, Board Director, and
Chair of the Territory Housing Appeals company and has conducted in
excess of 19,500 property auctions Trustee of the Golden Gavel Awards.
Board and Commissioner of Oaths NT.
ranging from residential, commercial, He has served as a judge for the
Diane has served as a Director farms, vineyards, and hotels. Australasian Auction Competition
on the Real Estate Institute of for a number of years and was Chief
Australia Board since 2014. He currently holds a Certificate 4 in
workplace training and assessment Judge and Convenor for the 2012
with TAELLN401A Qualification. Championships and has previously
held a position on the Australasian
Brett has been successfully running Steering Committee for four years.
a training, coaching, and mentoring
business for the Real Estate industry Brett is passionate about this exciting
since 1981. He has conducted training Profession and the opportunity to
for REISA for over 33 years. give back and serve its members.
His Industry awards include:
His training services have been sought
after by REISA, REIWA, First National, • 2013 Awarded Order of Australia Medal
Elders, Raine and Horne, Professionals, for services to the Real Estate Industry
Century 21, and LJ Hooker to provide • 2009 REIA Presidents Award
for Excellence
»» article continues
»» continued
Richard Simpson
Real Estate Institute of Victoria
• 2008 REISA Presidents Sir Robert Richard Simpson is a partner in
Torrens Award W. B. Simpson & Son, a family real estate
• 2005 Inaugural Society of Auctioneers business situated in North Melbourne
and Appraisers Hall of Fame Winner (in with over 140 years of history. As a
recognition of outstanding service to Principal in a business that sells and leases
auction and the real estate profession) both residential & commercial property,
• 1994, 1995, 1996 & 2001 Golden Richard has developed an excellent
Gavel Auctioneer Winner understanding of the major issues
• 1995, 1997 & 2001 – Australasian facing the real estate industry today.
Auctioneering Championship Richard provides extensive input into
entrant (SA entrant) the REIV and has previously served
• Member of REISA since 1982 – Fellow as Chair of the REIV Commercial &
and an associate of the REIA since 1983. Industrial Chapter Committee.
• Member of Society of Auctioneers Prior to joining the family business, Richard
& Appraisers (SA) Inc. Fellow was a Chartered Accountant with a major
and Life Member. firm where he worked in the banking and
Brett has served as a Director on the finance and property development sectors.
Real Estate Institute Board since 2017. Richard was elected to the Board of the
REIV in 2015. He has previously served
as President, Senior Vice President
and Vice President of REIV. Richard
has been appointed as Director on the
Real Estate Institute of Australia Board
representing Victoria following the
completion of her term by Robyn Waters.
2019 NATIONAL AWARDS FOR EXCELLENCE CROWN BALLROOM 1, CROWN PERTH BOOK NOW AT www.reia.asn.au/reia-national-awards-for-excellence-2019
The REIA National Awards for REIA President’s Award Business Broker
Excellence 2019 will be held at the
Crown Perth on Thursday 21 March The REIA President’s Award of the Year
2019. Further details for the REIA recognises and celebrates outstanding This award recognises excellence
Awards for Excellence dinner in contributions to the real estate in business broking and is intended
2019, links to accommodation profession by individuals from for individuals.
available and to purchase tickets any/all member states/territories
over an extended period of time. ACT -
for the Black tie event click here.
Entrants to the REIA President’s NSW -
Winners of REIA member state/ Award are nominated by a VIC Choon Ng – Xcllusive
territory REI awards held in 2018 in member state/territory REI. Business Sales
the 16 applicable categories, and
SA Nikki Katz – Benchmark
therefore eligible to enter the REIA
National Awards for Excellence in Achievement Award Business Sales & Valuations
WA -
2019, are outlined below and REIA This award recognises excellence
wishes all the entrants the best of luck. TAS Farzin Hesari – Link
amongst newcomers to the industry in
Business Services
all sectors of the real estate profession.
NT -
ACT Zoe Wheelhouse –
Independent Property Buyer’s Agent
Management
NSW Mark Stowe – Colliers This award recognises excellence
International in buyer’s agency practice and
is intended for individuals.
VIC -
SA Kirk Fernandez – ACT -
Toop&Toop Real Estate NSW Rich Harvey – propertybuyer
WA Chloe Mason – CBRE VIC Janet Spencer –
TAS Carlton Heres – Harcourts Buyer Solutions
Launceston SA Katherine Skinner –
NT Connie Kilian-Kwok National Property Buyers
– First National Real WA Ray Chua – Momentum
Estate O’Donoghues Wealth Residential Property
TAS -
T H A N K YO U T O O U R S P O N S O R S
NT -
»» article continues»» continued
Commercial Property Commercial Agency Commercial Salesperson
Manager of the Year of the Year of the Year
This award recognises excellence This award recognises excellence in This award recognises excellence in
in property management in the agency practice. It covers the commercial selling and covers individuals working
commercial sector and covers sector, including small, medium and as principals, licensed agents or sales
individuals working in small, large agencies. The agency may have consultants in the commercial sector;
medium and large agencies; and multiple offices in one city or regional small medium and large agencies and
independent or franchise agencies. location, but may not be a multiple city independent or franchise agencies. This
or national franchise group. An office award is not judged on sales figures.
ACT Rupert Cullen – Colliers within a franchise may enter this category
International (ACT) provided it is made clear the entry ACT Chris Antos – Laing & Simmons
PTY Limited and all claims again selection criteria Commercial Property (ACT)
NSW Paul Mcdonald - CBRE relate only to that specific office. This NSW Miron Solomons –
VIC Megan Mander – Urbane award is not judged on sales figures. Colliers International
Commercial Pty Ltd VIC Brett Diston – Ray White
ACT Colliers International
SA Andrew Forte – Lj Hooker Commercial Victoria
(ACT) Pty Limited
Commercial Adelaide – Nunawading
NSW Colliers International
WA Kendal Cross – CBRE SA Con Kavooris – Lj Hooker
VIC CBRE Commercial Adelaide
TAS Jessie Legge – NAI
SA Commercial SA WA -
Harcourts North
WA - TAS Andrew Howell – NAI
NT Tilly Rogers – Knight Frank NT
TAS Shepherd & Heap Harcourts North
NT First National Commercial NT Shun Hatton – First National
O’Donoghues Real Estate O’Donoghues
»» article continues
T H A N K YO U T O O U R S P O N S O R S»» continued
Corporate Support Communications Award Community
Person of the Year This award recognises excellence Service Award
This award recognises excellence in marketing, advertising or This award recognises the outstanding
amongst support staff in either the communications. Entrants must contribution of agencies or individuals
residential or commercial sectors. It be agencies, not individuals. involved in community service. The
is intended for individuals who must selection of entrants by REIA members
ACT Peter Blackshaw Real Estate
hold a general support position, is at the discretion of each REIA
NSW Nicholls & Co Estate Agents
e.g. receptionist, office manager. member. There is no requirement
VIC O’brien Real Estate Pty Ltd for REI members to nominate state
ACT Caroline Phengrasmy – SA - award winners, although all entrants
Independent Property must be REI members, employees
WA Rentwest Solutions
Management or corporate affiliate members
TAS Sims For Property
NSW Pippa Rowntree – Leah Jay (operating in the real estate sector
NT -
VIC Katie Taplin – RT Edgar however not necessarily practicing)
SA Tara Stokes – Harris at the time of nomination and at the
Real Estate Innovation Award time of the award presentation.
WA Melissa Harmer – Century This award recognises innovation ACT Peter Blackshaw Real Estate
21 Team Brockhurst in the industry. Entrants must
NSW Alexandra Haggarty - David
TAS Nicole Berry – Harcourts be agencies, not individuals.
Haggarty First National
Signature ACT Independent Property VIC Compton Green Pty Ltd
NT Jenna Steel – Real Group Tuggeranong SA Klemich Real Estate
Estate Central NSW Cooley Auctions WA Century 21 Team Brockhurst
VIC Market Share Property TAS Key2 Property
SA - NT Ray White Darwin
WA Century 21 Advance Realty
»» article continues
TAS Harcourts Huon Valley
NT Real Estate Central
T H A N K YO U T O O U R S P O N S O R S»» continued
Large Residential Medium Residential Small Residential
Agency of the Year Agency of the Year Agency of the Year
This award recognises excellence in This award recognises excellence in This award recognises excellence in
agency practice in the residential agency practice in the residential agency practice in the residential
sector, where a single trading sector, where a single trading entity sector, where a single trading entity
entity employs 21 or more people, employs between 11 and 20 people employs a maximum of 10 people
including admin and the principal. including the principal and operates including the principal and operates
The entrant can be an independent from a single location under its from a single location under its
or a franchise office operating from a own license OR the entrant can be own license. The entrant can be
single location under its own license an independent trading entity or a an independent trading entity or a
OR a trading entity with multiple single franchise office owned and single franchise office owned and
offices in different locations operating operated under its own license. operated under its own license.
under a single license and aggregating
its offices into a single entry. ACT McGrath Dickson ACT En Vogue Property
NSW - Management
ACT Independent Property NSW Garwood Estate Agents
VIC Nicholas Lynch
Group Inner North & City
SA LJ Hooker Kensington/Unley VIC Network Pacific Real
NSW Highland Property Agents Estate Pty Ltd
WA Century 21 Team Brockhurst
VIC Methven Professionals SA Harcourts Barossa Valley
TAS Harcourts Huon Valley
Mooroolbark WA Benchmark Specialist
NT Knight Frank NT
SA Toop & Toop Real Estate Property Managers
WA Hedland First National TAS Sims For Property
Real Estate NT Elders Real Estate Katherine
TAS Harcourts Launceston
NT Real Estate Central
»» article continues
T H A N K YO U T O O U R S P O N S O R S»» continued
Residential Property Residential Salesperson
Manager of the Year of the Year
This award recognises excellence This award recognises excellence
in property management in the in selling and covers individuals
residential sector and covers working as principals, licensed
individuals working in small, agents or sales consultants; in the
medium and large agencies; and residential sector; small medium
independent or franchise agencies. and large agencies; and independent
or franchise agencies. This award
ACT Renee Bink – Independent is not judged on sales figures.
Property Management
NSW Laura Bowd – Cobden ACT Mario Sanfrancesco – Peter
& Hayson Blackshaw Manuka
VIC Melanie Dennis – NSW David Highland – Highland
Domain & Co PM Property Agents
SA Ros Munt – Smallacombe VIC Vicki Sayers – RT Edgar
Real Estate SA Kate Smith – Raine &
WA Laura Levisohn – Horne Semaphore
M Residential WA Peter Clements –
TAS Tameka Smith – Mint Real Estate
Key2 Property TAS Helen Lehane – First National
NT Michael Bongiorno Real Estate Kingston
– First National Real NT Sascha Smithett – Real
Estate Framptons Estate Central
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MARKET AFFORDABILIT Y
SNAPSHOT SNAPSHOT
EXTRACTED FROM REAL ESTATE MARKET FACTS EXTRACTED FROM ADELAIDE BANK/REIA HOUSING
SEPTEMBER QUARTER 2018 AFFORDABILITY REPORT, SEPTEMBER QUARTER 2018
Quarterly Australian weighted Sep June Sep
median house price is $751,411 2018 2018 2017
Quarterly Australian weighted median Proportion of family income to meet:
other dwellings price is $587,959 Home loan repayments 31.4% 32.2% 30.3%
Rent payments 23.9% 24.1% 24.4%
Median house prices up:
Brisbane 1.0% to $530,500 NSW Housing affordability improved most
Adelaide 1.0% to $475,250 in NSW with loan repayments as
proportion of income decreasing
Median house stable by 1.5 percentage points
Melbourne 0.0% to $834,000 VIC Victoria had the highest number
Median house prices down: of loans to first home buyers
Darwin -0.5% to $497,500 QLD Queensland was the only state
Canberra -0.8% to $635,000 or territory in which housing
Sydney -3.1% to $1,101,532 affordability did not improve
Perth -4.9% to $490,000 in the September quarter
Hobart -6.1% to $475,000 SA In South Australia both housing
Median other dwelling prices up: affordability and rental affordability
improved over the September quarter
Canberra 1.8% to $440,000
Melbourne 0.2% to $604,000 WA Western Australia had the largest
decrease in the number of loans to
Median other dwelling prices down: first home buyers, yet has the highest
Sydney -0.7% to $734,775 proportion of first home buyers
Hobart -1.0% to $365,000 TAS Tasmania had the largest decline in
Perth -1.3% to $395,000 both housing affordability and rental
Adelaide -3.1% to $344,000 affordability over the past year
Brisbane -3.7% to $395,000
Darwin -7.7% to $352,500 NT Northern Territory was the state and
territory with most improvement in
rental affordability over the quarter
ACT The Australian Capital Territory had
the highest decrease in number of
loans (excluding refinancing) (-7.8%).REIA
PUBLICATIONS
REIA has published property market data and
analysis for several decades. It has an excellent
reputation as a highly credible source of information
and considered opinion on the residential and
commercial property markets in Australia.
REIA publications use information collated from a wide variety of
sources including real estate agencies, industry and government.
Both raw data and analysis are published in REIA reports.
The Adelaide Bank/REIA Housing Affordability Report and the REIA Real
Estate Market Facts may be purchased as a 6 or 12 month subscription. For
more about the Adelaide Bank/REIA Housing Affordability Report, click here.
For more about the REIA Real Estate Market Facts publication, click here.
Also, “datacube” spreadsheets provide key information on quarterly
median values, dating from the beginning of REIA data collection through
to the current quarter, for all capital cities where data is available. For
more information on REIA datacubes, please call 02 6282 4277.Your life your fund
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The information provided does not constitute financial product advice. However, to the
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Super advises that it has not considered any individual person’s objectives, financial situation
or particular needs. Individuals need to consider whether the advice is appropriate in light of
their goals, objectives and current situation. Members should obtain and read the Product
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Pty Ltd ABN 68 056 044, 770 AFSL 240569, RSE L 0000314, REI Super ABN 76 641 658 449,
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THE DOORS ARE
OPEN TO PROPERT Y
OPPORTUNITIES
They say you should zig while others zag, but are
you brave enough to grab the opportunities out
there at the moment?
If you are influenced by popular opinion, So, what are the current opportunities Vendors in some marketplaces are
then you’ll probably be sitting on the and how can you maximise them? bypassing the traditional route of marketing
real estate sidelines right now; at It’s true that lending conditions are and auction preparations, fearing that
least as far as property investment is particularly tough right now, but it’s also their property will be passed in and,
concerned. General media sentiment is true that the banks are going through a perhaps in some cases, that they’ll end
that the Australian property market is very challenging time with the Banking up with debt rather than profit, or even
‘crumbling around our ears’ or ‘falling just a clean slate. Many agents report
Royal Commission putting customer
at record levels’. Such emotional that off market transactions are becoming
confidence at an all-time low. As a
language in the media is designed to more common and buyers are much
result, private lenders are working much
do only one thing – fan our fears – and better placed to make a slightly lower
harder at putting together great deals
for many Australians it’s working. offer AND have it accepted, than they
for investors, utilising their flexibility to
The reality is that home prices in major would have been a year or two ago.
be able to customise lending solutions
capital cities have experienced consecutive and match the right borrowers with the With the markets having slowed somewhat
monthly falls for almost a year and lending finance best suited to their choices. in the major capitals, but some experts
conditions have become more difficult forecasting a return to moderate growth
as a result. Attendance at auctions is The climate of fear also impacts on how by the end of 2019, rethinking your
down, so clearance rates are at an all-time people price their properties to sell. Panic investment strategy might therefore not
low, and the length of time properties about managing mortgages and fear that be a bad thing. Growth has been steady
stay on the market is steadily rising. So properties won’t sell, combine to create in cities like Adelaide and Hobart and this
yes, all of that is happening, but your a powerful vortex. Because a smaller is expected to continue over the next
response comes down to the perspective pool of buyers has a wider selection of 3-5 years. These cities also offer great
you choose going forward. It’s human properties to choose from, they hold more lifestyles, if you plan to live in your new
nature to err towards secure and safe power than home sellers have been used property or need solid reliable tenants.
choices, but property investment is about to in recent years. With every weekend
As always with property investment, do
risk management. You need to decide if of low clearance rates, vendors become
your research, know what your long-term
you are one of the few investors brave more negotiable and properties that may
property investment goals are, and focus
enough to prioritise opportunity over have been sold well above their value
on choices that will help you to achieve
safety, in a climate of general fear. a year or two ago are now selling for
those goals. Whatever is happening in the
perhaps as much as 8 to 10% less in parts
The cyclical nature of property markets current climate should be considered, but it
of Sydney & Melbourne – even more in
and the general stability of the Australian shouldn’t motivate your decisions entirely.
the upper quartile of the marketplace.
property market, means that the upward If there is a great property available at an
climb out of the trough is inevitable. A big part of success in real estate is unbelievable price, don’t jump on it like a
Your reward could be delivered tenfold about psychology and right now the hung-over bargain shopper on Boxing Day.
in the form of considerable gains ball is firmly in the buyer’s court. With Nothing is too cheap if you don’t need it.
when the upturn arrives, and arrive it less competition, buyers now face Focus on quality properties that fulfil your
certainly will. The question is; will you decisions not all that usual to them; which goals in areas that have historic records
pull away from the masses and steel reasonably priced home will they choose of strong and stable growth, with more
yourself for some contrarian investing? from the many that are now options? of the same predicted for their future.US E D ATA - I N S I G H T S T O S E E
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S H O R T-T E R M R E N TA L S
The Australian Taxation Office The rental property market makes up Do your clients own
(ATO) this year launched an a significant share of the economy. a rental property?
In 2016 approximately 2.1 million
extensive data-matching If your clients own a residential
individuals reported rental income
program to identify taxpayers of $42 billion. Rental properties are
rental property, remind them they
receiving income from short are not able to claim deductions
high on the ATO’s priority list given
term rentals. Information from for travel expenses relating to
that there is evidence that some
inspecting, maintaining, or collecting
online platform sharing sites for taxpayers are getting it wrong.
rent these holidays. Your clients
around 190,000 Australians are The ATO now matches data provided can deduct travel expenses if they
now being examined to identify by online rental platforms and their are carrying on a rental property
taxpayers who have left out financial institutions against ATO business or are an excluded entity.
rental income and over-claimed records to identify taxpayers not
If your clients have already incorrectly
deductions. meeting their registration, lodgement,
claimed deductions for the cost of
reporting, or payment obligations
travel to and from their property
when renting out property on a short
in their 2018 tax return, they will
term basis. The new data complements
need to request an amendment.
long-term rentals information which
the ATO already receives from The law change came into effect on
state and territory bond boards. 1 July 2017 and affects tax returns
from 2017–18 and onwards.
The data collected includes income
received per listing as well as For more information visit
listing dates, enquiry and booking ato.gov.au/rentaltravel
rates, prices charged or quoted
per night and other information.
Details of the ATO’s data matching
strategies are published at
ato.gov.au/datamatchingProfessional indemnity claims: A real risk for real estate professionals When you’re focused on racing to property inspections, managing tenants and negotiating contracts, professional indemnity risk is probably the last thing on your mind. But the reality is that these everyday real estate scenarios can expose you to risks that could lead to a compensation claim. Professional Indemnity insurance can act as a safety net to provide protection from the costs associated with any claims, including legal costs and any damages awarded. If you would like to find out more or discuss your insurance needs, please contact Aon today. 1300 734 274 au.realestate@aon.com aon.com.au/realestate * Conditions apply. For full policy wording please contact 1300 734 274. © 2018 Aon Risk Services Australia Limited | ABN 17 000 434 720 | AFSL 241141. This information is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. So before deciding whether a particular product is right for you, please consider the relevant Product Disclosure Statement or contact us to speak to an adviser. AFF0987 0618
INDUSTRY UPDATE
Industry news from around Australia
Northern Territory led by onshore gas exploration. There is “Brett has contributed to the direction and
an area, around 600 kilometres South strategy of the REINSW for 10 years, and is
2018 has proven to be one of the
of Darwin known as Beetaloo Basin. Gas recognised within the industry as a strong
most trying years on record for the
has been discovered there in quantities leader and innovator,” Mr McKibbin said.
Darwin property market with volumes
unheard of before in Australia – in fact Based on the Central Coast, Brett is
falling to near record lows and prices
the first tranche of exploration has shown the director of Raine&Horne Terrigal,
retreating to those of the late 1990’s.
approximately 500 times more gas at Avoca-Beach, Saratoga, Erina.
This has been coupled with vacancy
Beetaloo than the INPEX gas lines will “As an advocate for the Path for
rates rising to nearly 9 percent as
be bringing in from off-shore….in fact as Professionalism, Brett’s enthusiasm
the year closed out.
one pundit put it, enough gas to meet and dedication means REINSW
The key issue has been an oversupply, Australia’s entire consumption needs for will be in good hands.”
predominantly in the Unit market, which over 500 years. Assuming all goes well
The new REINSW Board was sworn
in itself is not an unusual situation in any with the initial exploration and licenses
in on Thursday, 22 November
property market from time to time, but to drill, there is a real hope of around 2018 at the REINSW AGM.
we have had this occur at a time when 6,000 to 10,000 jobs being created and
Source: The Real Estate Institute
we also have witnessed a huge exodus of a drive to repopulate the Top End. And of New South Wales
population from the Territory following population growth is what is needed to
the completion of the construction phase normalise the Darwin property market.
of the giant (US$40 billion) INPEX gas
Quentin Kilian, CEO, The Real Estate
plant. The result has been a rapid, and Institute of the Northern Territory
ongoing, decrease in demand coupled
with an ample supply of stock.
Brett Hunter to take helm of
Interestingly the same scenario has not REINSW in November 2019
played out in Alice Springs which, in 2018,
The Real Estate Institute of New
saw strong resurgence. Sales were up
South Wales has elected Brett
dramatically and rental vacancies have
fallen to less than 1 percent (at one stage Hunter as President-Elect of the
the was virtually no residential rentals industry body, effective November
available in the Alice metro area), and 2018 – for a one-year term.
this has also given them rental yields REINSW CEO Tim McKibbin said the
above 8 percent – stronger than any appointment of Brett Hunter as President-
other major metro area in Australia. Elect will ensure a smooth transition
We are hopeful that 2019 will be the start when REINSW President Leanne Pilkington
of an economic revival in the Territory steps down in 12 months-time.
»» article continuesINDUSTRY UPDATE
Industry news from around Australia
»» continued
we knew our competitors would look “Now the average worker receives
at us as two young women who have 88 emails a day and checks their
never sold real estate,” says Suzannah. email 77 times a day. We realised we
“But what they didn’t consider was couldn’t keep operating like this.”
that being young meant we are tech On using technology
savvy, being female meant we built
Suzannah says the issue of pace
a business that empowers women to
is compounded by changing
build long-term careers and having
consumer behaviour.
never sold real estate meant we could
look at the process with fresh eyes. “Consumers now expect what they
want instantly. And it’s up to us to
“However, our competitors still
provide it,” she says. “We did not
certainly questioned the future
want to be a taxi company in the
and stability of Toop&Toop.”
year before Uber came out.
Suzannah Toop This prompted Suzannah and her sister to
“We wanted to ensure that the technology
look at Toop&Toop’s offering critically.
we invested in (and continue to evolve
“We started looking at things under a and review) will be what our clients
Legacy is not always a good microscope,” says Suzannah. “We realised need now and in the future. There’s
thing, says Suzannah Toop we hadn’t changed that much (which isn’t no point updating a taxi metre when
Although her list of accomplishments a bad thing). But we did question whether within a year everyone will have an app
is (incredibly) long – she completed a we were reinventing ourselves enough. to order a car that can be tracked.”
double degree in Law and Commerce, was “We asked ourselves would we be Suzannah says every technology they
accepted into AMP’s Capital Graduate doing things the same way if we implemented was to ensure they
Program and in 2016 she was admitted started the business today.” remained relevant to their clients.
as a lawyer in the Supreme Court of
On the question of pace “We focused on automation but did
NSW – when Suzannah Toop returned
not replace personnel,” she says. “We
to Adelaide to run her family’s real Suzannah says in asking tough
leveraged technology to allow our staff
estate business with her sister, she was questions, they could better identify
to have more time to provide the level of
young and had never sold a house. what was working well, what needed
service our clients expect. This allowed
improvement and what needed to go.
But that certainly didn’t stop her us to become high tech and high touch.”
maintain and growing Toop&Toop’s “For us, trying to work out how to
combat pace was a big issue,” she says. On the future
reputation as South Australia’s leading
independent real estate agency. “We used to write a letter, put it in Suzannah says we can all take comfort in
an envelope, stick a stamp on it and the fact that every industry is changing.
On the advantage of inexperience post it. The recipient would do the “We’re all in this together,” she
“When I returned to Adelaide to take same and the whole communication says. “All industries are expected
the helm at Toop&Toop with my sister, process could take up to 14 days. to change, not just real estate.”
»» article continuesINDUSTRY UPDATE
Industry news from around Australia
»» continued
She also reminds us that as technology “Residential real estate is a high Housing and rental affordability
changes our environments, our value, low volume, high risk improves across Australia: report
hiring decisions must also evolve. investment that requires better levels
Housing affordability has shown
“At Toop&Toop, we measure IQ and of education and professionalism
improvement across Australia, except for
EQ (emotional quotient or emotional than Fair Trading can mandate.
Queensland where it has remained stable,
intelligence), but we also measure “Creating a Property Services Commissioner according to research from the Real Estate
AQ, adversity quotient,” she says. will provide a consistent strategy to address Institute of Australia and Adelaide Bank.
“When markets shift and real estate gets housing affordability in NSW. It will provide REIA President Malcolm Gunning said
harder, AQ is incredibly important.” a consistent strategy and framework to the September quarter 2018 edition
Source: The Real Estate Institute
deliver better quality planning outcomes. of the Adelaide Bank/REIA Housing
of New South Wales “It will provide a single centralised Affordability Report found rental
overview of legislation and regulation affordability improved in all states and
that impacts residential, commercial, territories except for Victoria and Tasmania.
REINSW launches petition for
strata and rural property. “New South Wales showed the most
Property Services Commissioner
“A Property Services Commissioner will be improvement in housing affordability
The Real Estate Institute of New South
able to advise government on best outcomes over the quarter and the Northern
Wales is calling on the community to sign
to remove legislative red tape and improve Territory show the most improvement in
a petition for the real estate profession to
consumer protection as well as support the rental affordability,” Mr Gunning said.
move out from under NSW Fair Trading and
place it under the direction of a Property drive to increase education, service delivery “Over the quarter the proportion of
Services Commissioner reporting to the standards and consumer satisfaction median family income required to meet
Department of Premier and Cabinet. through the property services industries. average loan repayments decreased by 0.8
“We are seeking over 10,000 signatures, percentage points to 31.4 per cent, while
REINSW CEO Tim McKibbin said it
as this level of engagement means the proportion of median family income
is time for the Premier to recognise
that a third of the profession is voicing required to meet rent payments decreased
the extraordinary value and importance
by 0.2 percentage points to 23.9 per cent.”
that property has to the hearts their opinion and action would need
and hip pockets of her constituents to be taken,” Mr McKibbin said. Across the country, the number of loans
and the economy of the state. decreased by 4.8 per cent, with decreases
To sign the petition titled Gladys Berejiklian:
in all states and territories, the largest in
“Residential real estate contributes $107 Move Property Services Out of Fair
the Australian Capital Territory (-7.8 per
billion to the NSW economy annually* Trading go to https://www.change.org/p/
cent). New loans also decreased by 11.9%
and more than $8.4 billion to the State the-premier-of-nsw-gladys-berejiklian-
from the same quarter in 2017. All states
Government through stamp duty**. move-property-services-out-of-fair-trading
and territories showed an annual decline in
However, NSW ‘boasts’ the most Sources: *CoreLogic, ** Statetax.com.au, *** HIA new loans except for Tasmania where there
expensive real estate in Australia with
Source: The Real Estate Institute was a 2.7 per cent increase. The decline
government legislation and red tape
of New South Wales ranged from 17.6 per cent in Western
adding more than 40 per cent of the cost
Australia to 4.4 per cent in South Australia.
of a new home***,” Mr McKibbin said.
»» article continuesINDUSTRY UPDATE
Industry news from around Australia
»» continued
“Despite improved housing affordability, “The weighted average median price for “Reflecting the squeeze on loan approvals,
the number of first home buyers other dwellings decreased to $587,959 over the past 12 months, loan numbers
decreased by 2.0 per cent over the over the quarter, with prices decreasing have decreased by 11.9 per cent across
quarter. However, the results are in all capital cities except for Melbourne the country with loans to first home
mixed around the country with large and Canberra. Hobart had the largest buyers decreasing by 3.7 per cent.
increases in the Northern Territory fall in house prices and Darwin had the Mr Gunning said the size of loans
(14.7 per cent) and a decline in largest fall in other dwellings. Hobart has has also fallen with the average
Western Australia (-5.7 per cent). the lowest median price for houses at loan across Australia dropping by
“The decline in first home buyers is $475,000 and Adelaide the lowest median 1.8 per cent, the largest quarterly
systematic of the credit squeeze that is price for other dwellings at $344,000. decrease since March 2017.
emerging. While APRA’s restrictions were “Over the quarter, the median rent “Loans to first home owners are also
designed to curb high risk lending practices for three-bedroom houses increased reducing in size. Up until a year ago
the current practice of reducing loan in Melbourne and Hobart, remained the average loan to those entering the
amounts and increasing approval times steady in Sydney, Brisbane, Adelaide, market was above 90 per cent of the
across the board is becoming a constraint Perth and Canberra. Darwin was the rate of non first home buyers. Since June
on economic growth,” Mr Gunning said. only capital where the median rent for 2017, this rate has decreased to 80 to
three-bedroom houses declined. 85 per cent,” Mr Gunning concluded.
House price drop largest Mr Gunning said the median rent
in seven years: REIA for two-bedroom other dwellings
increased in Melbourne, Brisbane and Victorian election result
House prices have seen the largest
Adelaide, remained steady in Sydney, The REIV has congratulated the Hon.
decrease since December 2011, according
Perth and Canberra and, decreased Daniel Andrews and the Victorian
to the latest research from the Real
in Hobart and Darwin. Melbourne Government on their resounding
Estate Institute of Australia.
had the largest increase while victory in the Victorian Election, which
REIA Real Estate Market Facts for the Hobart had the largest decrease. was held on 30 November 2018.
September quarter 2018 shows weighted
average median prices fell by 1.6 per cent “The weighted average vacancy Daniel Andrews’ positive campaign,
for houses, the most in almost seven years rate for the eight capital cities promises that focussed on the future,
and by 0.8 per cent for other dwellings, increased to 2.6 per cent during underpinned by an articulated
their largest decline in 12 months. the September quarter indicating a vision, strong economy and clear
slight easing of the rental market. plans around infrastructure, public
REIA President Malcolm Gunning said
“The markets of Sydney, Melbourne, services and social policy reform
the weighted average median price
Brisbane, Canberra and Hobart have contributed to the sweeping success.
for houses for the eight capital cities
decreased to $751,411 over the quarter, vacancy rates below the 3.0 per The REIV has publicly supported the
with prices decreasing in all capital cent benchmark indicating a strong current and proposed infrastructure
cities except for Brisbane and Adelaide demand for rental accommodation projects that will transform Victoria.
and remaining stable in Melbourne. in these capital cities. The Government’s ambitious agenda
»» article continuesINDUSTRY UPDATE
Industry news from around Australia
»» continued
is estimated to cost around $60 billion Stable property market conditions Perth rental market
aimed at setting Melbourne up expected in WA in 2019 REIWA analysis shows the upward
as Australia’s biggest city with a trajectory of the Perth rental market
REIWA’s 2019 outlook indicates the WA
population intake of around three property market should remain stable in the should continue through 2019, with
million in the next two decades. New Year, with some notable improvements stable population growth and slowing
The Government will be hoping that expected in the Perth rental market. new-building construction levels the
the economic conditions remain key drivers for this improvement.
REIWA President Damian Collins said market
buoyant and that the property conditions throughout 2018 had been Mr Collins said the Perth rental
industry continues to contribute to fairly subdued, with the most significant market had lead the way in 2018,
the Government’s revenue base. improvements occurring in the rental sector. with stable median rents, healthy
leasing activity levels, declining listings
Key platforms for the second term “We’ve seen weekly sales in Perth hover and a plummeting vacancy rate.
relevant to our industry are: at around 500 per week throughout
“With population growth in WA expected
• Immediate start to the $16 billion the year, while listings for sale were
to remain stable and new dwelling
North-East Link largely unchanged from 2017 levels,
commencements slowing, available rental
fluctuating between 13,000 and 16,000.
• Melbourne Metro Rail Link continuation stock should continue to decline. This
Listings should continue to trend at
• $6 billion extension of the level should see competition amongst tenants
current levels throughout 2019.
crossing program increase, putting further downward
“While we expect sales activity in 2019 to pressure on the vacancy rate, which
• Planning for $10 billion Melbourne
largely reflect what we’ve seen this year, recently dropped below four per cent for
Airport Rail Link
there is a possibility that rising consumer the first time in four years,” Mr Collins said.
• Roll out of one million subsidised solar confidence levels, coupled with improved Perth’s overall median rent price has
panels (further information on this will housing affordability, could translate held at $350 per week since April 2017
be forthcoming including rebates for into increased sales volumes in 2019. – the longest period of stable rents
property owners for rental properties)
“If weekly sales remain at current levels Perth has experienced since REIWA first
It is important to note that the or better, Perth’s median house price started recording rental data in 2001.
REIV took a bipartisan approach could improve during the next 12 months. “We’re at 19 months and counting of
to the election and supported and However if lending standards tighten further, stable median rent prices in Perth. If
rejected policies, not politics. this could restrict the number of people listings continue to decline and leasing
We have already began meeting with that are able to purchase a property, which volumes remain healthy, we should
new ministers, engaging with relevant could negatively impact sales and prices. see the overall median rent price
departments and continuing to advocate Additionally, if the banks choose to increase increase in 2019 for the first time since
in the interests of our members. interest rates any further, this also has the September 2014,” Mr Collins said.
potential to adversely affect buying and While REIWA’s 2019 outlook for the
Source: Gil King, CEO, The Real
Estate Institute of Victoria lending conditions in WA,” Mr Collins said. Perth rental market is positive, any
changes to negative gearing could
»» article continuesYou can also read
