WINNERS AWARDS FOR EXCELLENCE 2018 STATE AND TERRITORY REI'S - IN THIS ISSUE - Real Estate Institute of Australia
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REIANEWS
ISSUE 84: NOVEMBER 2018
STATE AND TERRITORY REI’S
AWARDS FOR EXCELLENCE 2018
WINNERS
IN THIS ISSUE
EC O N O M I C O U T LO O K – B E N D I G O
A N D A D E L A I D E BA N K G RO U P
L EA D E RS H I P D E V E LO P M E N T
S C H O L A RS H I P S N OW AVA I L A B L E
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 Malcolm Gunning
REIA President
PRESIDENT’S
REPORT
WELCOME Awards for Excellence in Perth on
21 March 2019. It is the ultimate
from a decade-long reliance on
mining. The property sector is one of
FROM REIA’S accolade to be a national winner. the largest sectors in the Australian
PRE SIDEN T I am encouraged by the increasing economy in terms of employment,
number of professionals that strive GDP and investment. Recognising
to be recognised as the best in the importance that the property
Australia. I wish all contestants for sector plays in the economy as well
The focus of this month‘s REIA News
the national awards the vey best as in policy with taxation of property
is on the annual awards the REIA
for next March and look forward and housing affordability being at
state based member organisations
to meeting them in Perth. the forefront of public policy debate
have recently held recognising
as we lead into a Federal election
the best performers across a wide We also have two articles on the
spectrum of categories including REIA advocates the appointment
economy and the housing market.
residential, commercial, rural, sales, of a Minister for Property Services.
The first by David Robertson, Head of
property management, buyers The Minister for Property Services
Economic and Market Research at the
agent, marketing and innovation. can take leadership in addressing
Bendigo and Adelaide Bank Group.
housing affordability by taking a co-
These annual awards are an industry The second by Ray Ellis, CEO of First
ordinated and holistic approach of all
highlight. They acknowledge the National Australia and member of
levels of government in objectively
hard work and effort by individuals REIA’s National Advisory Council.
addressing all property taxes.
in achieving the best results for These two articles highlight the
their clients and encourage and As we enter the election campaign
importance of the property sector to
promote excellence and best practice in 2019 REIA News will bring you
the Australian economy. Australia’s
in the real estate profession. articles on REIA’s policies on housing
property sector including new home
affordability and taxation.
Importantly, the winners at the state building has been a crucial support
level have the opportunity to compete to economic growth and increased I hope you enjoy reading
against their peers at the REIA National employment in the transition away this month’s edition.
Mr Malcolm Gunning
R EI A P R E S I D EN T
Follow us on Twitter @REIANational
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This article is brought
to you by David Robertson
Head of Economic
and Market Research,
Bendigo and Adelaide
Bank Group Ltd
ECONOMIC
OUTLOOK
The domestic economy With Australia’s GDP growth at At the same time our unemployment
accelerating, versus declining 3.4%, well ahead of other advanced rate has fallen to 5%, its lowest
economies and its fastest rate for level for over six years, and despite
housing prices – how far can
more than six years; and our Reserve trade tensions around the world
these diverge? Bank having just upgraded their our trade surplus has just widened
growth forecasts, the contrast with
to $3 billion for September, the
property price declines is stark. The
third largest monthly surplus on
latest forecast from the RBA is for 2019
to be another year of 3 %+ growth, record. Why then does financial
adding to the 27 years of uninterrupted commentary and media headlines
growth since our last recession, point to a more sombre environment,
helped by ongoing population growth including stretched household
and healthy business conditions. budgets and falling property prices?
»» article continues
»» continued
of these risks. Household disposable
income has been lower than its
long-run average, but has picked up
a little: and if the RBA are correct in
forecasting GDP growth to remain
above 3%, this may well continue.
Looking to the regions
Capital city property prices have fallen
sharply in Sydney, Melbourne and
Perth, but in an orderly manner, and
falls are less evident in other capitals;
while regional prices are still higher
on average than a year ago. The falls
in Sydney in particular need to be
put in context, having appreciated
so aggressively in the decade prior
to their recent peak- however with
debate raging on the merits and the
challenges arising from population
growth, the role of regional centres in
Clearly the falling unemployment locally appears to be household
this discussion is important. Increases
rate does not reflect levels of income and wealth. This concern,
in demand for property in a range
underemployment, with part-time which puts at risk household spending,
of regional hubs outside of capital
workers seeking more hours, nor the goes hand in hand with tightening cities is evidenced by the relative
lack of wages growth, with the Wage lending standards driving a fall in credit performance of median housing prices,
Price Index only up 2.3% year on year. growth, and recent falls in some capital and anecdotal evidence points to
Inflation is lower again at just under city property prices. Nevertheless, the expensive capital cities driving intra
2%, but beyond the risks from overseas prospect for next year of further jobs and interstate migration to a degree.
around trade and rising US interest growth, business investment and the The politics of population growth is
rates, which have added volatility to lower Aussie dollar supporting export becoming more prominent leading
stock markets, the primary concern markets should help to offset some up to state and federal elections, and
»» article continues
»» continued clearly infrastructure investment is a large part of the solution to some of these challenges- but part of this investment needs to be directed to road and rail servicing regional centres, to take the pressure off the capitals. While the impact of falling property prices in certain regions is difficult to quantify in terms of consumer spending, and media headlines will continue to highlight the areas that are falling, the outperformance of regional prices may continue to fly under the radar; but the role of regional centres in helping Australia to cope with population growth should not be overlooked. Our economic outlook remains promising, so the divergence between our economic growth and housing prices can be partly explained by the following Reserve Bank chart, which shows that falls have been most pronounced in the areas where investor lending is most concentrated. This may suggest that the tighter lending standards (partly driven by regulatory ‘benchmarks’) are having a material impact on investor lending, as the regulators hoped, and not so much on the broader housing market.
2018
ACT
NS W AWARDS
FOR
NT
SA
TA S
V IC
WA EXCELLENCE
1 2
3 4
REIACT 2018 Awards for Excellence
Canberra’s real estate industry stars their daily business. The Institute 1 Residential Salesperson of the Year – Mario
Sanfransceco Peter Blackshaw Real Estate
shine brightly at the annual REIACT introduced three new categories Manuka presented by Dr Nicola Powell
Awards For Excellence gala dinner for this year’s Awards which Allhomes
were all very well supported. 2 Innovation Award – Will Honey Independent
The ACT’s real estate sector Property Group Tuggeranong presented by
came together on 15 September, “I would like to commend all the Sharlene Jamieson REI Super
to celebrate its achievements finalists. As in past years, it was an 3 Commercial Property Manager of the Year
– Rupert Cullen Colliers International –
and recognise outstanding exceptionally strong and tight field presented by Benjamin Grady BAL Lawyers
performers for 2018. and, with a new judging platform 4 Small Residential Agency of the Year –
introduced this year allowing judges En Vogue Property Management – presented
“Our annual Awards for Excellence are by Emily Coates Sympatico Property Styling
to give a greater range of marks, many
a chance to reflect on the contribution
of the categories were separated
the real estate sector makes to the
by the smallest of margins.
ACT and the professionalism and
dedication of all the businesses and “We were also pleased to note the
individuals working in this field,” said increased support shown for “team”
REIACT President, Michael Kumm. award categories which is clearly a
sign of recognition by industry leaders
“This year we celebrated 27 award
of the importance of this growing
categories and over 380 people
culture within real estate to achieve
attended the Awards ceremony. It
excellence in customer experience
shows what a vibrant and successful
for the vendors and purchasers.
real estate sector we have in the ACT,
with the region showing continued
growth in the property market, amidst See more of the REIACT AWARDS here.
the decline in other capital cities.
“The Institute believes the continued
success and growth of the Awards
for Excellence is evidence of the
professionalism in which ACT
industry representatives conduct
1 2
3 4
REINSW 2018 Awards for Excellence
REINSW recognises outstanding achievements across ten agency and 1 Clarence White (Winner Auctioneer of
the Year for BresicWhitney (he is now
achievements at 2018 Awards 12 individual categories,” says Pilkington. independent: Clarence White) and Pru Kelly
for Excellence from Phillips Pantzer Donnelley (finalist for
“Real Estate Agency – Large was awarded Operational Support)
It is the New South Wales real estate to Highland Property Agents, Real Estate
2 Leanne Pilkington, Laura Bowd Cobden
industry’s night of nights and the 21st Agency – Medium to Harcourts Hills & Hayson (winner residential property
Annual REINSW Awards for Excellence Living and Garwoods Estate Agents management), Rachael Beadman from
Gala Dinner didn’t disappoint. Direct Connect
took home Real Estate Agency – Small.
3 John Cunningham, of Cunninghams,
Held at Sydney Town Hall, 600 “The Innovation award was presented Woodrow Weight Award winner
guests walked the red carpet into to Cooley Auctions, Buyers’ Agent 4 Cameron Nicholls, Nicholls and Co Estate
the impeccably styled Centennial was awarded to Rich Harvey of Agents, winner – Communication
Hall and Vestibule and greeted propertybuyer and Residential
with champagne and canapes. Salesperson went to David Highland
of Highland Property Agents. See more of the REINSW AWARDS here.
Once seated MC, Jean Kittson,
reminded them of why they were “In the new categories of Operational
all there – to celebrate the best and Leadership,Operational Support and
brightest in the real estate industry. Buyers’ Agency, the awards went to
Throughout the night there were tears Pippa Rowntree of Leah Jay, Renee
and cheers, commiserations for missing Edge of Aus Property Professionals
out and celebrations for winning. There and propertybuyer respectively.
was an incredible display of camaraderie “The prestigious Woodrow Weight
and great respect shown for an industry Award, which recognises outstanding
that contributes so much to NSW. contribution to real estate agency
REINSW President Leanne practice, was presented to REINSW
Pilkington says the best, bravest Immediate Past President John
and brightest work across the Cunningham from Cunninghams,”
industry was recognised. continues Pilkington.
“The 2018 REINSW Awards for The Awards for Excellence Gala
Excellence highlighted the industry’s Dinner was held at Sydney Town Hall
biggest successes and most outstanding on Thursday, 27 September 2018.1 2
3 4
REINT 2018 Awards for Excellence
A spectacular night of recognition With nominations from throughout 1 Knight Frank NT – Medium Residential
Agency of the Year
for the Real Estate Industry the Territory all categories were hotly
2 Elders Real Estate Katherine – Small
in the Northern Territory. contested with the winners well Residential Agency of the Year
deserving of their accolade. The Public
This year was the 20th anniversary 3 Carol Need – Ken Waters Award
Nominations were overwhelming,
of celebrating the REINT awards for 4 Real Estate Central – Large Residential
proving that Real Estate Agents in the Agency of the Year
excellence along with the theme
NT are held in high esteem by their
of China, a fantastic night of pomp
clients. It was good to see awards
and ceremony was enjoyed by all.
going to not only Darwin but Katherine
Dragon Dancers and Fireworks and Alice Springs respectively.
welcomed our guests before entering
Large Agency for 2018 was
a room that transported you to a
awarded to – Real Estate Central
celebration in China. You could hear
the gasps as everyone took their seats. Medium Agency for 2018 was
awarded to - Knight Frank
The awards for excellence kicked off
with the REINT’s most prestigious Small Agency for 2018 was
award, the Ken Waters award. It is awarded to – Elders Katherine
not given out every year – in fact
there have only ever been four other
See more of the REINT AWARDS here.
recipients, and is only ever given to
someone who has been nominated
by their peers and then passes a
very rigorous set of criteria. The
recipient of this award was Carol
Need of Carol Need Real Estate.1 2
3 4
REISA 2018 Awards for Excellence
2018 Newscorp realestate.com.au REISA CEO, Greg Troughton said 1 Community Service Award, Oren Klemich
(Klemich Real Estate) and Ben Owen (BankSA)
REISA Awards for Excellence “These Awards recognize the elite
2 Sir Robert Torrens Award – Andrew Turner,
in Real Estate of real estate professionalism and Commercial SA
commitment in South Australia.
On Saturday 20 October, South 3 SA Salesperson Residential – Kate Smith
Everyone serves as a worthy (Raine & Horne Semaphore) with Bill Dimou
Australia’s real estate elite battled from Newscorp Australia
ambassador for the profession
it out at the 2018 News Corp 4 REISA CEO Greg Troughton and CEO Award
throughout not only this State
Australia realestate.com.au Awards Recipient Rachel Lawrie, Ray White North
but the entire country” Adelaide
for Excellence in Real Estate.
“The REISA Awards recognize and
The 2018 Awards celebrated all things
celebrate everything that is good
Cuban with a Stars of Havana theme.
in the real estate profession. Not
The Adelaide Convention Centre took
only do they applaud the best of
us all back to the land of salsa, cigars
the best but they also are a potent
and Desi Arnaz Jr. This year the REISA
reminder to Government and the
Awards for Excellence were overseen
public that we are doing the right
by MC Dave Thornton who not only
thing and ensuring the protection
had to keep over 800 real estate
of our clients and consumers”
agents under control but also a record
number of nominees and finalists.
The Awards are the pinnacle See more of the REISA AWARDS here.
of real estate achievement in
South Australia and demonstrate
the passion and dedication of
the real estate profession.1 2
3 4
REIT 2018 Awards for Excellence
The 2018 REIT Awards for Excellence 1 Tony Collidge, President of the REIT with
President’s Award winner Tameka Smith,
was celebrated on 27 October 2018 Key2 Property
at the Country Club Casino. It was 2 Small Residential Agency of the Year Award
our industry’s night of nights where Sims for Property; Sponsor, Real Estate View
we recognise the state’s very best, 3 Medium Residential Agency of the Year
celebrating their achievements Award Harcourts Huon Valley; Sponsor,
Real Estate View
and contributions to the industry
4 Large Residential Agency of the Year
over the past 12 months. Tommy Award Harcourts Launceston; Sponsor,
Little (The Project) was the MC and Real Estate View
provided a high level of energy
and entertainment throughout the
night. Congratulations to all the
finalists and winners, and thank
you to the sponsors and everyone
who attended. We hope to see even
more members take part in 2019.
See more of the REIT AWARDS here.1 2
3 4
REIV 2018 Awards for Excellence
Real estate’s night of nights “The transaction of property is 1 Medium Agency of the Year, Nicholas Lynch
celebrates excellence integral to Victoria’s economy. As 2 Corporate Support Person of the Year, Katie
Taplin, RT Edgar
the peak association for 2300 real
The Real Estate Institute of Victoria 3 Outstanding Young Agent of the Year, Luke
estate agencies and 5000 individual
(REIV) recognised member agencies Spence, N Beller & Company Pty Ltd
members, the REIV relishes this
and individuals at the most prestigious 4 Community Service Award, Compton Green
annual opportunity to acknowledge
event on the Victorian real estate
the high standards that our members
calendar: the 24th REIV Awards for
aspire to and reach in our communities.
Excellence held on 25 October 2018.
“The REIV works closely with our
The REIV presented the awards at a
members to implement best practice
gala function attended by more than
and raise the bar of professionalism
a thousand real estate professionals.
in an industry which is complex,
REIV President Robyn Waters said fast-paced and ever changing.
the calibre of entries improves year- Congratulations to the 2018 Awards
on-year. “We all know that real for Excellence winners and finalists.”
estate is a competitive business
and the award submissions are
testament to the individuals See more of the REIV AWARDS here.
and agencies who demonstrate
innovation, determination and
passion in securing the best results
for their clients,” Ms Waters said.1 2
3 4
REIWA 2018 Awards for Excellence
More than 430 real estate professionals “On behalf of the Institute, I’d like to 1 REIWA CEO Neville Pozzi and Lisa Larson of
Benchmark Specialist Property Managers
attended the REIWA Awards for congratulate the 2018 nominees and – Small Residential Agency of the Year
Excellence on Wednesday 25 winners on your achievements and 2 Laura Levisohn – Residential Property
October at Crown Perth, to celebrate the excellence service you continue Manager of the Year
and acknowledge excellence in to provide the WA community in the 3 Peter Clements – Residential Salesperson of
the WA real estate industry. face of what remains a challenging the Year
marketplace,” Mr Pozzi said. 4 REIWA President Damian Collins with the
REIWA CEO Neville Pozzi said the Kevin Sullivan Award Winner Ian Cornell
Awards for Excellence were a unique The 2018 Awards for Excellence
opportunity for the Institute to winners will represent WA in the
acknowledge those WA real estate Real Estate Institute of Australia’s
professionals who demonstrate best National Awards for Excellence, which
practice in their chosen careers, going are being hosted by REIWA in 2019.
above and beyond for their clients,
“I look forward to Western Australian
industry and the community at large.
taking center stage at the national
“The Awards for Excellence transcend Awards and seeing tonight’s
mere selling acumen, instead winners compete against the best
recognising those who go above in the country,” Mr Pozzi said.
and beyond for their clients, have
outstanding business acumen and who
are experts in their chosen fields. See more of the REIWA AWARDS here.
“This year’s Awards are particularly
noteworthy as they fall within
REIWA’s centenary year. The quality
of tonight’s nominees and winners
are a testament to the high standards
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emotive human element • To create the blueprint for
a thriving career in a new
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N O N AT I O N A L
PROPERT Y SLUMP
According to the head of First National Real Estate chief growth, and particularly the most
Australia’s largest independent executive, Ray Ellis says there is much expensive properties in those areas,
to be optimistic about nationwide and to adjust back to more realistic levels.
real estate network, there is no
that declines in sections of both Sydney
national property slump and and Melbourne’s property markets
‘Those negative adjustments in
Australians should be more the highest quartile skew the
do not make up a ‘national market’.
data significantly, exacerbating
optimistic about our economic
‘Don’t expect to read it in the a sense of gloom, but again, that
and property market outlook. headlines but we are not in a doesn’t indicate what’s going on
property slump and the market is everywhere’ says Mr Ellis.
not about to crash’ says Mr Ellis.
‘Current circumstances present great
‘Housing prices in regional Tasmania opportunities for first home buyers
and its cities are growing strongly, in Sydney and Melbourne, now that
Adelaide, Brisbane and Canberra foreign and Australian investors
are all ahead of where they were at have retreated after much tighter
this time last year and Brisbane will lending restrictions were introduced.
soon absorb its current supply of Plus, a trend of homeowners from
new apartments. Perth is about to Sydney and Melbourne selling up
turn the corner and many regional and moving to Tasmania, Adelaide
areas, including some quite close to and Brisbane is underpinning
Melbourne, have extremely positive moderate growth in those markets.
outlooks. Even Melbourne’s west is up ‘There’s plenty of unsatisfied demand
1.4 per cent over the past 12 months.’ out there and when that combines
Mr Ellis points out that Australians with our increasing population,
have enjoyed a strongly rising seller’s which is still growing by 300,000
market since the Global Financial Crisis per year, and the fact that we have
and that the gains in some areas have declining unemployment, what we
been stratospheric. As with all market are witnessing is an evening out of
cycles, he believes it’s now time for the our markets more generally and a
areas that experienced the most rapid return to more normal conditions’.LEADERSHIP DEVELOPMENT
S C H O L A R S H I P S N O W AVA I L A B L E
Building on the significant Expressions of Interest
developmental momentum achieved
Find out more and register
during #100daysforchange, Women &
your interest by completing
Leadership Australia is administering
the Expression of Interest form
a national initiative to support the
here prior to 7 December, 2018:
development of female leaders
www.wla.edu.au/funding1
across Australia’s real estate sector.
The initiative is providing women with
grants of between $3,000 and $7,000
to enable participation in a range of
leadership development programs.
The scholarship funding is provided
with the specific intent of providing
powerful and effective development
opportunities for women in the
industry; however the funding
is strictly limited and has to be
allocated prior to the end of 2018.INDUSTRY UPDATE
Industry news from around Australia
REISA’s New Leadership Team REIA President Malcolm Gunning said the appointment of a Minister for
the research highlighted the significant Property Services,” Mr Gunning said.
REISA is pleased to announce that Mr Brett
contribution the property sector makes “For example, research shows that
Roenfeldt OAM and Mr Andrew Friebe
to growth in the Australian economy. abolishing stamp duties and replacing
were elected President and Vice President
Elect of REISA respectively at the REISA “Australia’s property industry, including them with land tax not only has a greater
Board Meeting on 22 October 2018. new home building, has been a crucial impact on affordability than changes
REISA CEO Greg Troughton said “I look support to economic growth and to negative gearing and capital gains
forward to working with Brett and Andrew increased employment in the transition tax, but improves economic growth.
over the coming 12 months in maintaining away from a decade-long reliance “The Minister for Property Services can
REISA’s position as the Number 1 real on mining,” Mr Gunning said. take leadership in addressing housing
estate training organisation in South “The property sector is one of the largest affordability by coordinating a holistic
Australia, the Number 1 membership based sectors in the Australian economy in terms approach of all levels of government in
real estate association in South Australia of employment, GDP and investment. It is objectively addressing all property taxes.
and the Number 1 voice of advocacy for also one of the most heavily taxed sectors It is only then that a strategy can be
all things real estate in South Australia” with research by HIA showing that the formulated that pulls the right levers.”
“As REISA moves towards 2019 in fully average tax burden on the new housing Find out about REIWA’s position
implementing its PM Licensing package, sector is around 30 per cent of the value. on negative gearing.
commencing a review of South Australian “If we are serious about addressing Source: The Real Estate Institute
real estate legislation and celebrating housing affordability, we need to take a of Western Australia
our 100 years as the peak real estate holistic approach by looking at all taxes
professional association in South Australia. and charges impacting on the final cost
Brett and Andrew – along with the entire of housing. We cannot just tinker with REIWA welcomes the passing of
Board – will provide REISA with valuable one or two that are ‘easy fixes’ without much-anticipated strata reforms
experience and insights to help us fully considering the consequences.” REIWA and its members are delighted
maintain our course” Mr Troughton said. that the Strata Titles Amendment Bill
REIA have called for the Federal
Source: The Real Estate Institute Government to look at supply-side 2018 has passed the upper house. It
of South Australia is understood the Community Titles
solutions, including streamlining planning
processes and reducing extra taxation on Bill will also pass within weeks.
Holistic approach to property home buyers such as transfer (stamp) duty. REIWA President Damian Collins
tax required to address “Improved infrastructure such as public congratulated Landgate and the
housing affordability transport to employment hubs which WA Government for passing this
The Real Estate Institute of Australia has encourage decentralisation to more critical piece of legislation, stating
welcomed the Master Builders and Housing affordable suburban and regional areas the reform would bring strata
Industry Associations’ research findings should be considered. Recognising the communities into the 21st century.
into the economic impact of changing importance that the property sector “REIWA understands that Landgate
negative gearing and capital gains tax. plays in the economy, REIA advocates will now begin drafting the regulations
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Industry news from around Australia
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for the new reforms, which are due Officially launched on 26 October trust the information supplied. With itrack,
to come into effect in late 2019. 2018 at REIWA’s CONNECT Real agents not only get a productivity tool
Estate Conference, the itrack to enable them to succeed in selling and
“We have been a vocal advocate for
property app allows buyers to track listing more, but an environment that
strata reform over the last decade,
properties listed for sale on reiwa. builds relationships - which is all powered
providing the real estate industry’s
com at the click of a button. by the Real Estate Institute of Western
perspective on the proposed reforms
REIWA CEO Neville Pozzi said itrack gives Australia, an organisation that reflects
during the lengthy consultation a position of integrity and transparency
WA property seekers a unique, 100 per
period following the work of REIWA’s for everybody involved in the real
cent transparent insight into any property
dedicated Strata Reform Committee. estate transaction,” Mr Hegney said.
sales campaign they choose to track.
“Once implemented, the new legislation The itrack property app is available
“We are excited to be powering the
will provide a more streamlined and to download now in the App Store
itrack property app, which we’re
transparent system for everybody involved and will be available on Google
confident will benefit all parties
in strata living. This includes, better dispute Play in the coming weeks.
involved in a real estate transaction.
resolution, clearer obligations for strata Buyers can track every movement of For more information,
managers and a fairer and more robust a property they are interested in, with visit itrackproperty.com.au.
system for the termination of schemes. factual and reliable notifications and Source: The Real Estate Institute
updates sent to their phone as the of Western Australia
“It is imperative that the WA Government
puts enough focus and resources behind property’s sales campaign progresses.
Landgate to quickly and effectively “For sellers, the itrack property app Peak industry body says Residential
draft the regulations to ensure the new helps them to better gauge buyer Tenancy amendments may have
legislation is able to be put into practice interest levels, while for REIWA real unintended consequences
as soon as possible,” Mr Collins said. estate agents, the app helps enhance
The Real Estate Institute of the ACT
productivity, providing a platform for
View more information about (REIACT) says the ACT Government’s
them to connect better with interested
REIWA’s position on strata reform. proposed amendments to the Residential
buyers and build strong relationships
Source: The Real Estate Institute Tenancy Act in order to provide better
with vendors,” Mr Pozzi said.
of Western Australia protection for tenants may actually
Gavin Hegney, Company Director of have the opposite impact and in fact
Gavin Hegney Property and real estate make conditions tougher for them.
New itrack property app gives WA industry specialist, said what he loved REIACT Director and Property
property seekers total transparency most about the itrack platform is that Management Committee Chair, Mr Craig
reiwa.com is now powering itrack property, it has created a circle of benefit for all Bright, said that the changes would
a new app delivering real-time real estate those that engage in the process. impose additional costs on lessors which
information to West Australian buyers and “Buyers are always wanting to know will ultimately need to be recouped by
sellers, that they can’t otherwise access, everything that is happening in a way of increased rents, thereby adversely
direct from the agent on the ground. campaign and want to most importantly impacting housing affordability.
»» article continuesINDUSTRY UPDATE
Industry news from around Australia
»» continued
“Whilst REIACT is still in consultation When tenants break leases, changing the “This means that potentially there
with the ACT Government regarding practice of landlords charging amounts are going to be less properties to
the proposed amendments, our key beyond what they have had to spend rent, which in turn results in higher
concerns, outlined below, point to the when a tenant leaves early, especially rents as competition for diminishing
potential impact of these changes on both when there is a replacement tenant. numbers of properties increases.”
lessors and tenants alike. For instance: “The current provisions, introduced in Mr Bright also said the ACT Government
Creating a presumption in favour August 2017, of a fixed fee for a tenant had responded to changes in the
of allowing tenants to have pets. to break their lease, were put in place Victorian Residential Tenancies Act,
to create certainty for both parties. as modelling for amendments to the
“We believe that the amendments are
However, this proposed amendment may ACT Residential Tenancies Act.
not necessarily going to make it easier for
seriously impact the tenant’s security “This is of concern to the Real Estate
tenants to find pet-friendly properties. of tenure. In the prevailing tight market Institute of the ACT, as not all states and
In the current market where there are conditions, this is especially the case.” territories are experiencing the same
generally multiple applications for a
Shifting the onus from tenants to lessors to market conditions. Individual jurisdictions
rental property, a lessor would have the
justify a rental increase that is “excessive should be very cautious with regard to the
option to select a tenant who doesn’t
beyond a basic CPI-based threshold”. unintended consequences that can arise.”
own a pet as the easier route to follow.
The proposed amendment could impose “To our knowledge, there is no other Source: The Real Estate Institute of
jurisdiction in Australia that has a the Australian Capital Territory
additional costs for the lessors which
will ultimately translate to rents. The prescribed rate of increase. Manipulating
market forces will impact the supply of
current provisions allow for negotiation
housing stock available for rent, which
between the two parties and there is
of course could ultimately disadvantage
very little evidence that the current
tenants, especially those in lower
practice is not adequate,” he said.
socio-economic circumstances.”
Strengthening renters’ rights to
Mr Bright indicated the impacts of
make basic modifications, including
such changes needed to be considered
using blu tack and picture hooks.
in the context of the current rental
“It is important to be very specific market in the ACT at this time.
with regard to what modifications Additional cost imposts incurred by
can actually be carried out. It should the lessors must ultimately translate to
also be noted that any approved higher rents. We are already observing
changes are at the tenant’s expense. market stress as a result of diminishing
Any approved modifications should be supply, with less investors, much
carried out by licenced tradesperson tighter lending conditions and current
as should any make good provisions government policy settings as they
at the end of the tenancy.” relate to statutory charges in the ACT.POLITICAL WATCH
Information and news from government
One-stop-shop for financial $1 million. This will be almost triple Statistics at the ABS. “Private sector
complaints opens for business the existing limits of FOS and CIO. houses also fell, by 1.5 per cent.”
Australian consumers and small • In the case of a small business primary Among the states and territories,
businesses will be spared the expense production dispute, AFCA will be able to dwelling approvals fell in September
and inconvenience associated with award compensation of up to $2 million. in the Australian Capital Territory (8.4
taking financial complaints to court, • AFCA will retain an unlimited per cent), Northern Territory (6.9 per
with the Coalition Government’s monetary jurisdiction for cent), South Australia (3.9 per cent),
superannuation complaints. Queensland (2.3 per cent), Western
Australian Financial Complaints
Australia (2.1 per cent), New South
Authority (AFCA) opening for business The Coalition Government committed to
Wales (1.3 per cent) and Victoria (1.0 per
as of Thursday 1 November 2018. provide $1.7 million to support AFCA’s
cent) in trend terms. Tasmania was the
This new one-stop shop represents establishment, as part of the 2018-19
only state to see an increase in dwelling
a new era for financial dispute Budget. Its launch overhauls Australia’s approvals (1.5 per cent) in trend terms.
resolution, delivering free, fast and financial dispute resolution system,
Approvals for private sector houses
binding services for all financial bolstering community confidence
fell 1.5 per cent in September in
complaints, whether they be related by providing consumers who have
trend terms. Private sector house
to banks, credit providers, insurance suffered a loss with greater access to
approvals fell in Queensland (3.1 per
companies or superannuation funds. free and fair dispute resolution.
cent), South Australia (3.0 per cent),
Consumers and small businesses will The establishment of AFCA is part Western Australia (2.2 per cent) and
benefit from having increased access to of the Coalition Government’s plan Victoria (1.7 per cent). New South Wales
redress as AFCA will have significantly for stronger economy and ensuring recorded an increase of 0.5 per cent.
higher monetary limits and compensation a fair go for all Australians.
In seasonally adjusted terms, total
caps than were available under the Source: The Hon Josh Frydenberg MP, dwellings rose by 3.3 per cent in
Financial Ombudsman Service (FOS) and Treasurer of the Commonwealth of
Australia, Joint media release with The Hon
September, driven by a 9.2 per cent
Credit and Investments Ombudsman (CIO). Stuart Robert MP Assistant Treasurer increase in private dwellings excluding
• AFCA will be able to hear consumer houses. Private houses fell 2.7 per
complaints where the value of the cent in seasonally adjusted terms.
dispute is less than $1 million and will Dwelling approvals fall in September
The value of total building approved fell 1.3
be able to award compensation of up The number of dwellings approved per cent in September, in trend terms, and
to $500,000. This will be almost double in Australia fell by 1.9 per cent in has fallen for eleven months. The value of
the exiting limits of FOS and CIO. September 2018 in trend terms, according residential building fell 1.7 per cent while
• In the case of small business credit to data released by the Australian non-residential building fell 0.7 per cent.
complaints, a small business will be Bureau of Statistics (ABS) recently. Source: The Australian Bureau of Statistics
able to have their complaint heard “The fall was mainly driven by private
where it relates to a credit facility dwellings excluding houses, which
of less than $5 million and will be decreased by 2.7 per cent in September,”
eligible for compensation of up to said Daniel Rossi, Director of Construction
»» article continuesPOLITICAL WATCH
Information and news from government
»» continued
Stamp duty reforms insult: REINSW expense of the home buyers including the it must adjust the brackets to
most vulnerable – first home buyers. reflect today’s median house price
Reforms to Stamp Duty announced by
“The first tax bracket tops out at, and then index it from there.
the NSW Government is an insult to those
people trying to purchase a home in NSW. $14,000. I ask rhetorically when was “To do anything other than that is delivering
the last time you heard of someone reform without substance and is just
The Treasurer’s statement last week
buying a house for $14,000? disingenuous political grandstanding.
(5 November) provides no genuine relief to
home buyers, it’s nothing more than hype “Yes, indexing is good, and the Treasury “The Government’s own published
and bluster in the lead up to the election, says had it been introduced 15 years ago data sets out clearly the continuing
according to Real Estate Institute of NSW. then it would be better now – I agree. decline in property transactions and
In fact if it had of been done 32 years consequential Stamp Duty revenue.
REINSW CEO Tim McKibbin said the
ago it would be even better and deliver “The irony? There is empirical evidence
State Government’s intention to
a far more equitable outcome for the demonstrating that a reduction in the rate
index Stamp Duty by reference to the
property consumer (see table below).” of tax will drive more additional transactions
Consumer Price Index (CPI) starting
from 1 July 2019 without adjusting the Mr McKibbin said if the Government and consequently more revenue for
is serious about Stamp Duty reform Government,” Mr McKibbin said.
tax brackets is a real sleight of hand.
“NSW Treasurer Dominic Perrottet has
acknowledged that the stamp duty rates VALUE OF THE PROPERTY SUBJECT TO THE TRANSACTION
have not been amended since they were
introduced in 1986 and then says that Stamp Duty brackets - what they are and what they should be
he is going to apply indexation (CPI) to 1986 brackets - Unchanged 2018 brackets (Increased by CPI from 1986)
the set of tax brackets that are 32 years
$0 - $14,000 $0 - $37,580
out of date!” Mr McKibbin said.
“In 1986 the Sydney median house price $14,000 - $30,000 $37,580 - $80,520
was $93,576 and the median unit price $30,000 - $80,000 $80,530 - $214,730
was $86,109.
$80,000 - $300,000 $214,730 - $805,230
“At that time the overwhelming amount
of property transactions did not attract $300,000 - $1,000,000 $805,230 - $2,684,090
the higher rates of tax. Now with the > $1m and < $3m $2,684,090 - $8,052,260
Sydney median house price at $956,000
and the median unit price at $730,000 Premium Property Premium Property
Duty over $3m Duty over $8,052,260
the overwhelming amount of transactions
do attract the higher rates of tax.” * Note the above schedule sets out the adjusted stamp duty brackets by reference to the CPI increase
from June 1986 to June 2018
Mr McKibbin said by sitting on their hands
for 32 years successive Governments Source: The Real Estate Institute of New South Wales
have unconscionably profited at the
»» article continuesPOLITICAL WATCH
Information and news from government
»» continued
Property services industry moves property managers across NSW will have
forward with electronic signatures the ability to develop, communicate and
finalise residential tenancy agreements
Consumers will soon be able to sign
digitally,” Mr McKibbin said.
and witness contracts including
residential agreements electronically Introduced into NSW Parliament by the
in huge step forward for the property Upper House (Legislative Council) on 17
services industry, according to the October 2018, the Bill was passed without
amendment on 24 October 2018. The
Real Estate Institute of NSW.
same day, it was sent to the Lower House
Currently the Electronic Transactions (Legislative Assembly) and last night (13
Regulation 2017 (NSW) prevents electronic November) the bill was passed. It will
witnessing of documents. If passed without now be sent to the Governor of NSW for
amendment, the Conveyancing Legislation assent and the law is expected to become
Amendment Bill 2018 (NSW) will enable effective within the next 10 days.
witnesses to electronically sign documents.
Source: The Real Estate Institute
REINSW CEO Tim McKibbin said REINSW of New South Wales
has been vocal on the importance
of this issue for many years, and
it’s great to see Government has
finally taken the step forward.
“This is good for agents, landlords
and tenants,” Mr McKibbin said.
“Times are changing, and technology is
playing a more pivotal role in the property
services industry and this amendment
will bring the industry in-line with
other industries embracing technology
and streamline business practices.
“We have lobbied hard for this win
and we are proud that we can provide
the tools property professionals need
to take advantage of the efficiencies
this Bill will enable when passed.
“With digital forms and agreements, and
digital signing platforms – such as REI
Forms Live and DocuSign – at the ready,THE WORLD
Property news from around the world
New home approvals reach The data also shows that in September Estate agents fees have fallen by
record high in New Zealand 2018, the seasonally adjusted number 34% in seven years in the UK
of new dwellings consented fell 1.5%
Building consents for town houses, Estate agent fees in the UK have fallen
month on month following a 6.8% rise
flats, and units have all reached a new by 34% over the last seven years but
in August, and a 9.7% fall in July.
record high in New Zealand, the latest half of those selling a home pay over the
official figures to be published shows. Meanwhile, the latest lettings index from average amount, research has found.
Barfoot & Thompson shows that rents
A record 6,059 new town houses, The average fee is now 1.18%,
increased in the greater Auckland region
flats, and units were consented to excluding VAT, and British estate
by 3.8% in the 12 months to September
be built in the 12 months to 2018, 2018 with a significant increase in the agents charge the lowest commission
according to the data from Statistics average rental of a three bedroom when compared to most major global
New Zealand, up 29% year on year. apartments in Auckland Central due to locations, according to the research from
Construction statistics manager Melissa the addition of a premium apartment home service group The Advisory.
McKenzie said that the annual number of complex to the managed rental portfolio. For example, aged in France and the United
townhouses, flats, and units consented On an annual basis, West Auckland States charge fees of 5%, while in Japan it is
has risen steadily since late 2012, and Franklin/Manukau are the only 6% and in Mexico it is 7.5%. Lower than the
coming off historically low levels. two regions to have an average UK is Hong Kong at 1% and China at 0.5%
She also pointed out that growth in new rental increase over 5%. The research also found that in the UK
townhouses, flats, and units between In the sales market the firm’s data shows over 95% of sellers choose a traditional
2013 and 2016 was driven by activity in that the average price in September high street agent over an online hybrid
both Auckland and Canterbury, but more in Auckland was $929,757, marginally and sole agency is the most common
recently it was driven by Auckland. higher than August while the median fee structure chosen by the public.
In the year ended September 2018, some price at $835,000 was marginally lower,. It suggests that fees have fallen 34%
32,548 new homes were consented ‘The price point at which vendors since 2011 as high street firms have
nationally, up 5.4% from the September and buyers are agreeing has barely felt under pressure to compete for
2017 year. Of this national total, 12,945 moved in the past nine months,’ instructions due to market conditions and
were consented in the Auckland region. said Peter Thompson, managing the rise of the lower fee online agents.
A breakdown of the figures shows director of Barfoot & Thompson.
The survey found that 47% of sellers paid
that 20,692 detached houses were However, listings have increased to the higher than the national average, with
consented, down 2.4% year on year, while second highest ever level for the month the majority paying 1.5% commission.
at 6,059 the number of townhouses, of September and is more than 205 11% of sellers paid between 1.5% and 2%.
flats, and units increased by 29%. higher than at the same time last year and Meanwhile, 95.3% of sellers chose to sell
more than 425 higher than the monthly
Some 3,825 apartments were consented, with a traditional high street estate who
average for the previous three months.
up 21% year on year and the number charge a ‘no sale no fee commission that
of retirement village units consented Source: PropertyWire.com usually includes all marketing materials
reached 1,972 retirement, up 6.3%. and accompanied viewings, rather than an
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