Australian Market Snapshot May 2018

Rent Roll insights – Snapshot of the Australian Real Estate Market – MAY 2018

Declining auction clearance rates, pressure on Property Management fees and what is in store for the Australian housing market over the next 5 years.

Data shows that the residential real estate market in Australia is made up of approx. 10 million homes, there are over 473,000 sales per year and Approx. 1 in 3 homes in Australia are rented.  This total capital base is worth around $ 7.5 trillion dollars, Which towers over the next highest capital base, being superannuation, sitting at $2.5 trillion dollars.

Our research concurs with other leading property sources across the country and many reports suggest that the Australian housing market will remain flat for the next 5 years. Auction clearance rates have declined significantly, with only about half, selling under the hammer compared to almost three quarters selling this time last year.

 

Our research concurs with other leading property sources across the country and many reports suggest that the Australian housing market will remain flat for the next 5 years. Auction clearance rates have declined significantly, with only about half, selling under the hammer compared to almost three quarters selling this time last year.

There is a clear decelerating rental growth in the capital cities, however regional markets remain steady, the combination of downward pressure on rents, and a flattening capital gain will likely put direct pressure on Rent Roll fees.

Here at RED we are seeing that Internal business efficiency is more important than ever. Unnecessary duplication, replication and inefficiency will dramatically affect future Rent Roll agency profits more than in previous markets.

The focus on Rent Roll growth and profits will likely increase over the next 5 years and we are already seeing the volume in the sales of Rent Roll businesses increase dramatically over the last 2 quarters, with a trend of larger, efficient businesses, buying smaller and less efficient businesses.

For more research, download the market snapshot report.

At Real Estate Dynamics we help Real Estate Agencies Build, Buy & Sell through our Rent Roll Coaching, Property Management Training and Business Brokerage right across Australia.

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