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

Recent Articles

I’ll always be here for you dad!
Video | Fulfilling advisers’ Best Interests Duties

In this 5 minute video, Ian Tindale breaks down the steps financial advisers are required to take in regards to their clients’ Estate Planning in order to fulfil their Best Interests Duty.

Read more
Video | From business start-up to exit: Key decisions and the tax implications

This webinar uses a case study to highlight some of the key decisions throughout the lifecycle of a business, considering the variables from a tax and commercial perspective.

Read more
Fighting the Groundhog Day Blues

For many business owners and advisers, the first quarter of the new year can often feel like Groundhog Day – same challenges, same goals, same issues and same plan as every other year. Let’s not sap our energy trying to get amped about the same-old same-old.

Read more