Quarterly Rent Roll Market Report – June 2023

With the April to June quarter complete, and as this article is published, Real Estate Dynamics is processing 57 Rent Roll and Agency transactions with a total sale value of just over forty million dollars. This is a company trading record with buyer demand described by our team in every state as high.

In the June quarter, our Brokerage Team launched 51 new Rent Rolls and Agencies to the market, spoke with 171 new buyers, received 161 formal offers to purchase, and completed 99 complimentary appraisals for Rent Roll business owners.

Across the Eastern Seaboard, the median multiplier recorded on our settled sales was $2.91, and the average portfolio size transferred was 119 properties – with many leaders plugging this nice size into their existing portfolios. For the financial year, Real Estate Dynamics Brokered more than $59 Million if Rent Roll and Agency Sales, which includes the successful transfer of 13,388 rental properties.

In Queensland, amongst many other sales, Real Estate Dynamics brokered three sales on the beautiful Gold Coast (a very sought-after area for Rent Roll acquisition). The three sales achieved multiple offers within days of our team being appointed. The top sale on the Gold Coast this past quarter achieved a multiplier of $3.25. The Gold Coast has a very strong appetite for acquisition.

New South Wales buyer interest is very high, with CBD and inner-City Sydney tightly held. Real Estate Dynamics did broker a sale at a 3.7 times multiplier for a portfolio 14 km northwest of the CBD. Some regional areas, such as the beautiful Hunter Valley, are currently in very high demand.

Victoria’s demand from buyers is also considered high. Real Estate Dynamics brokered a sale around 16 km south of Melbourne’s CBD, achieving a multiple of 3.4 times with a large amount of Buyer Interest. Fee charging in Property Management is still very low compared with the rest of the Eastern Seaboard.

Tasmania has been tightly held this past quarter. However, the buyer enquiry is strong for the state. Real Estate Dynamics is certainly seeing some great examples of high fee charging in Tasmania.

Acquisitions from Buyers are largely focused on the accelerated Rent Roll growth plan they have, realising that organic methods alone (which I might add are extremely important too) won’t get them to accelerated growth. One proven method for organic growth is through our highly successful BDM Performance Program.

At Real Estate Dynamics, we label accelerated Rent Roll growth as being greater or equal to 20% additional revenue annually.

Being acquisition ready includes having your finance ready to go if required. If you are a buyer, this is essential.

Being sale ready includes having had discussions with your accountant and financial advisors about the tax and other implications of a sale (for example – whether a goodwill or company sale is best for your situation), as well as making sure the key management and tenancy documentation, as well as the operational activities in your Property Management business, are compliant, up to date and not lagging.

We hope you have found this update helpful and if you have any questions about selling or buying a Rent Roll that Australia’s largest Brokerage Team can answer, please fill out the form below and we’d be delighted to help you.


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