Welcome to this month’s REIP Industry Pulse.
With the NSW and VIC lockdowns currently set to continue through September, there is a lot of talk in the industry about the spring market being pushed back to late spring or early summer.
Right now, it’s great to see vaccination rates climbing but until they reach the 70% milestone, we’ll continue to face a shortage of new stock and have to limit our movements to comply with the 5km radius rule.
However, once restrictions do start to lift, we can expect to see a surge of new properties coming to market. This raises the question – after an extended period of downtime will agents be ‘game fit’ to tackle a sudden market uplift? Let us know what you think in our poll.
Mental health has quite rightly been given increased attention since COVID turned our lives upside down, and as industry leaders, we haven’t necessarily been given the best tools to support our people and their families through a situation like this.
The Real Care App has been specifically designed by the real estate industry to provide free mental health and wellness support. If you’re looking for new ways to support your team during this time, the app is well worth a look.
Lastly, we have some very exciting news from our partner Convini, and we welcome aboard another new partner 360 App. Don’t forget, REIP members get access to exclusive discounts and offers from all of our partners, so if you haven’t already signed up, join us now for free.
REIP Market Insights
After months of record-breaking activity, the market has seen a broad-based rise of 1.5%, the lowest monthly rise since January.
In this month’s podcast, Tim Lawless and Sadhana Smiles discuss auction clearance rates, listing supply, impact on the Spring market due to lockdowns, affordability impact and what is happening in the rental market.
Listen on Spotify
The real estate payments market is in for a major shakeup with Convini, PropTech Group, Flip Money and the BC Investment Group joining forces on a new venture; PropPay Holdings.
Under the agreement, PropPay will create a marketplace for real estate related payments for businesses and consumers – both owners and tenants – across both Australia and New Zealand.
According to a statement, PropPay will ‘simplify the payment experience when buying, selling or renting a property’. Day to day operations will be the responsibility of Convini’s founder and CEO Cameron Owens.
Find out more about this exciting news at Proptech and fintech forces to combine – Real Estate Business
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Spring into Summer
The extended lockdowns in both NSW and VIC are taking their toll.
Despite the efforts from our industry leaders to support their people through these difficult times, agents and their teams are mentally exhausted, drained and tired.
Now with talk of the spring market being pushed back to late spring / early summer to coincide with easing restrictions, there is a very real possibility that at that time, we’ll see a surge in both new stock and new buyers coming onto the market.
While we’re all looking forward to an uplift in activity, given the extended downtime we’ve all experienced, will your team be mentally and physically ready when a surge occurs?
Disclosure of orders under the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020
Starting from 1 September 2021, the Property and Stock Agents Regulation 2014 (the Regulation) has been amended to prescribe a new material fact that agents must disclose to prospective property buyers.
This is an important clarification for the property services industry as the existence of an order in force under the RAB Act could be very important to a consumer’s decision on whether to purchase a property within that building.
There was previously some uncertainty in the industry about whether real estate agents were required to disclose RAB Act orders to prospective purchasers. To put the issue beyond doubt, the Regulation has been amended.
Declining apartment pipeline offset by low-density surge
A leading residential development review forecasts an ongoing decline in apartments. This comes in a year where total building approvals for new apartments dropped below 40,000 for the first time since 2013, with only 34,100 new approvals in 2020.
However, low-density development site sales record strong growth with the share of total sales growing 23.1 per cent in 2020 (up from 10.1 per cent in 2015), while collective site sales post the strongest result in a decade – accounting for nearly 20 per cent of total residential site sales in 2020
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