This market wrap is more a review of the Australasian market.
October was a celebration for Ray White as the company reached a milestone, celebrating 110 years in business.
Spring is a high point for the real estate industry and the Ray White group had its best result for more than 2 years at $2.6 billion in sales. All markets were strong.
What was even more significant was 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 set all sorts of records.
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 under examined. With the more favourable currency exchange rate and a more willing approach by the New Zealand government to encourage Asian purchasers, New Zealand has become 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 achieved $64milllion in sales for the month of October. Particularly exciting is the proof that there is now renewed momentum in top-end markets.
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.
As always in 2012, there is a low level of stock in the local Chatswood market.