×

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

kaitlyn-baker-vZJdYl5JVXY-unsplash (1)
It’s official – Electronic Signing for Companies is here to stay!

Thankfully, on 22 February 2022, the Corporations Amendment (Meetings and Documents) Act 2022 (Cth) (the Act) received assent, amending the Corporations Act 2001 (Cth) (Corporations Act). This legislation clarifies and makes permanent the temporary relief measures which had in place 2020. The Act establishes a permanent mechanism which allows for: The electronic execution of documents […]

Read more
Untitled design
Who is responsible to repair damage following a natural disaster?

1. Rent Abatement In most cases, a lease will contain a clause whereby the tenant’s obligation to pay rent and other money under the lease (such as outgoings) is abated (either partially or completely) while the Premises are inaccessible or incapable of being occupied. 2. Reinstatement The Lease may contain specific obligations on the Landlord […]

Read more
pexels-nothing-ahead-4502492
Significant Changes to Residential Contracts

What are the changes?   Extension of Settlement Date Recently, there have been media reports of buyers losing their deposits because of a failure of their financial institutions to be able to settle on the settlement date. This change allows for either party to extend settlement date by up to 5 business days from the […]

Read more