October Market Update

 We always know what results to expect in October from the listing numbers that we achieve in September – the opening month to Spring!

We always know what results to expect in October from the listing numbers that we achieve in September – the opening month to Spring!

So hopes were high. We were rewarded with our best results for more than 2 years at $2.6billion. All markets were strong.

What was even more significant were the number of sales. These sales are now rivalling the numbers in the 2006 – 2007 period. It is this confidence of purchasers that has become such a feature in the latter part of 2012. If values hadn’t been adjusted then the Group would have be setting all sorts of records.

Surprise Surprise! New Zealand was absolutely unbelievable. Results up 37 per cent on October 2011.

Last month we mentioned that we would examine the New Zealand market more closely in this edition. It is now more than 6 months since the New Zealand market “lifted off”. We expected, through previous experience, that Australia would have followed six months later. But that has not happened. Why?

The strength of the Asian purchaser in New Zealand – particularly in Auckland cannot be overlooked or underexamined. With the more favourable currency exchange rate and a more willing approach by the New Zealand government to encourage Asian purchasers – makes New Zealand the flavour of the month for buyers from all different Asian markets.

Perhaps the most interesting result for October was from our Christchurch offices which have returned pre-earthquake volumes. No one expected this. “Surely Christchurch would lose relevance – particularly property” is often heard.

In Australia, Ray White’s Double Bay office completed 32 transactions and achieved $64milllion in sales for the month of October. Easily topping Australia and the Group. Particularly exciting is the proof that there is now renewed momentum in top end markets.

It was also no surprise that our Loan Market figures was very solid bearing in mind the number of sales that were negotiated. Consolidated volumes for AUST and NZ totalled more than $703million, this reflects a growth 11 per cent for October 12 year on year. This is the 3rd month for this financial year that volumes have exceeded $700m in the month.

There is plenty of action in the non-residential markets. Certainly the most dramatic was the sale of Rae’s boutique hotel at Watego’s Beach in Byron Bay for an undisclosed price with the papers suggesting somewhere in excess of $20million. This just shows that there is underlying confidence when “once in a lifetime” properties come onto the market.

What’s new at Ray White
During the month we celebrated the 110th anniversary from when Ray White opened. This tiny business in Crows Nest, Queensland. It was a fabulous day. We also talked about it being 10 years on from the huge centenary event we had.

“10 years on” was the theme for the ensuing company conference where we sought to compare the attitudes, programs and ambitions now embraced from just 10 years ago! There is so much we are doing that we never imagined back then.

During the month Andrew Freeman, a key member of the Victorian francishor team, committed to reopen Ray White in Rowville. This continues a trend that has benefitted the Group massively over the years – inviting first class salespeople to gain experience in our corporate team before planning to open their own business. We wish Andrew all the best.

We are preparing for 2013. We are conscious of our need to transform all our practices. How exciting is all this! Introducing and integrating all of our new technology products and platforms is a very specific task. The magic will be how we utilise all of this to bring and create greater value to all our different communities.

By – Brian White