Issue 15 | July 18th | More Evidence Of A Market Rebound
Hi, Andrew Bell here and coming to you as we enjoy some spectacular mid-winter weather.
We touched on the flurry of sales activity that has occurred post the election and it is interesting to see that the latest ANZ Property Council Survey shows the confidence in the property market made its second-biggest leap in the 8-year history of the survey jumping from 115 – 128 index points.
It does not seem that long ago that newspapers and 60 Minutes, in particular, were talking about the Armageddon that the property market was facing. There were those who relished in the idea of the property market collapsing; with 60 Minutes even suggesting it could drop by some 40 percent. The reality is that it dropped nationally around 10 percent and now the newspapers are full of stories talking about how the housing market has turned the corner and highlighting how difficult it is to pick the bottom of the market and that in reality, the bottom has already passed.
Lower interest rates obviously help and of course, there are other indicators that I have talked about previously such as unemployment where we see the latest newspaper and internet job ad numbers rebounding sharply in June. Whilst it is unlikely to push down unemployment below the 5.2 percent rapidly, it certainly is indicating an improved climate going forward. The tax cuts will stimulate the economy, but it is this confidence that plays the most important factor. Everyone I speak to, whether it is restaurants or tourist operators and the like, all tell me that here on the Gold Coast business has picked up substantially.
There was also an interesting article in the Gold Coast Bulletin that showed new data has revealed there is more than $14 billion worth of projects in the pipeline for the Gold Coast, providing thousands of construction jobs. This is a similar amount to what was invested in the lead up to the Commonwealth Games that turned the Gold Coast around from a languishing economy, and even a languishing community, to what we now have which is a very robust one. The Coast has never been in better shape and now we are experiencing so many interstate downsizers wanting to be part of the region.
I believe we are entering a very stable period for the property market. Prices have corrected and have made real estate attractive once again and the next phase of the property market cycle is that we should see some very happy times for both buyers and sellers with no crazy rises or no particular declines and we can focus on looking for our preferred property, whether that be our own home or an investment. No question we are seeing a shortage of property on the market which means buyers need to move quickly or they miss out on properties, but, by and large, it is just a great period of time for all associated with the property market.
Before I sign off for this fortnight, I should mention that we have just released notification of our upcoming Ray White Surfers Paradise Muscular Dystrophy Ball on the 14th of September at The Star Gold Coast. Within 48-hours of launching this year’s Ball, all 12 platinum tables were sold out. Our Gold and Silver tables are also selling fast so do not delay and make sure you book to come along for what is always regarded as the best social Ball on the Gold Coast where it is all fun and enjoyment and little formalities. This year’s theme is Broadway and we guarantee it will be a lot of fun and entertainment. Come along, support this great cause and embrace everything the Gold Coast stands for.
For more information visit the website or contact Selena Carson (email@example.com or 0410 650 185)
That is all for now. See you in a fortnights time and let’s look after one another in the meantime.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group