Hot Property: The biggest stories this week 3 - SEPT 2020

1. REIV launches public campaign against Andrews’ real estate restrictions

The REIV’s argues the government hasn’t taken time to understand the impact of a “complete lockdown” of the property market on ordinary Victorians, noting requests to restart the market have been ignored.

“Mr Premier, I don’t think you understand,” the REIV’s statement begins. “The inability to buy/sell/lease property in Melbourne is creating enormous emotional and financial distress in the community.

2. How will falling Chinese foreign investment affect the Australian property market?

Foreign investment from China in Australian real estate has been quietly on the decline for several years, dropping significantly to $6.1 billion in 2018-19, writes David Hancock.

The decline is attributable to: Chinese restrictions on money leaving the country, smaller Chinese student numbers, diplomatic tensions and a stronger Australian dollar. In addition, Australia tightened regulations, increased fees and taxes, and banks tightened lending to foreign investors.

3. COVID-19 pandemic sees spike in new property management firms

According to director of Coronis Now Jodie Stainton, property managers are shifting towards starting their own business as working remotely has shown there are potentially better opportunities for managers who start their own business.

She said in the past six months, “more than 500 property managers have contacted me and enquired about starting their own business, working for themselves and running their own portfolio”.

4. The Agency swoops in on Sydney’s upper north shore

Former banker-turned-real estate agent Jason Roach has most recently been aligned with Century 21, but said he was seeking “a premium, energetic brand that projects prosperity and success” for the next stage of his business expansion in his move across to The Agency upper north shore.

5. Sydney, Brisbane, Melbourne tipped to surge: Westpac

Westpac chief economist Bill Evans has revised his predictions, having previously expected a 10 per cent slump between April 2020 and June 2021, to a now 5 per cent correction through to late 2021.

The economist is now predicting short-term pain for property investors before a surge in value over the next two years.

6. Consumer demand changes to outer suburban areas

The Domain Buyer Demand Indicator has revealed houses and apartments in the outer suburbs of Sydney, Melbourne, Brisbane and Perth were the highest demanded properties for those cities for the month up to 6 September.

Consumers are starting to adapt to the new norm, with working from home making living near the office less crucial in capital regions.

7. Final clawback regulations released

The “Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers) (Mortgage Brokers) Regulations 2020” build on the draft regulations, released in August 2019 for public consultation which better explain how the regulations will operate.

8. Major bank announces new CEO, consumer

Westpac has appointed Chris de Bruin as chief executive of its consumer division.

Mr de Bruin, currently CEO of Middle Eastern non-bank Deem, will join the big four bank in “early 2021” (subject to regulatory approvals).

9. What can Mudgee offer investors that Orange can’t?

Bridesmaid suburb opportunities don’t just exist in the cities. A buyer’s agent has recommended that investors go further afield than big regional centres to get the most bang for their buck, with Mudgee the perfect example.

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