Time to talk up the market

Business Man With Coffee and Newspaper

It seems that we can’t open a newspaper at the moment without reading negative reports about the real estate market. Banks aren’t lending, or are restricting the class of person they are lending to, foreign buyers are on the nose, APRA is hammering the banks, there is a glut in apartment stock, construction prices are crazy, etc., etc.

All this negativity is feeding more negativity, and ultimately damaging our industry.


Despite what I read in the papers, what I am currently seeing across my desk is activity. Off the plan developments are still settling, apartments are for the most part valuing up and development sites are being acquired.  People are investing in their businesses and industrial and commercial real estate transactions are still coming through the door.

This is all good.

There are certain pockets where construction prices have gone bananas, and the number of approvals for apartment dwellings is off the charts. But the reality is that the market is sorting this out. Many of the approvals will not turn into buildings, and once the serious amount of construction that is happening now starts to subside, the cost of construction will start to level off.

The issue I see is therefore not one of a dire reality, but one of perception. And the risk is that our perception has the power to become our reality.

The takeaway here is, as participants in this industry, let’s lift the tone of our conversations from half empty to half full.  In the face of the negative reports, when given the opportunity to talk about the market: talk it up! And let’s see what the domino effect is.

Back to Articles
Redchip

Recent Articles

empty hall
Major change to the Commercial Building Disclosure Program

From 1 July 2017, expansion of the CBD Program will require most sellers and lessors of office space 1,000 square metres or more to obtain a Building Energy Efficiency Certificate before the building goes on the market.

Read more
With House Model And Stack Of Coins On Desk
GST and new property sales

From 1 July 2018, purchasers of new residential premises (new homes or apartments) and subdivided residential lots will need to pay any applicable GST on the sale directly to the ATO.

Read more
aircraft Wing
Investors lose depreciation and travel deductions

From 1 July 2017, Australian Residential Property Investors will lose two long-standing tax deductions for residential properties as a result of the Federal Budget 2017.

Read more