What happened to the Markets in May?

What happened to the Markets in May?

Followers of the White Paper might sense the drama that awaits the completion of our monthly results.

No lesser tension this time. World economic market talk was terrible. The soft property results in April could only support fears of a further slide. Surely the ‘experts’ knew what they were talking about!

Well, pleasant surprises do happen. The Ray White Group achieved the best result in two years - in fact our achievement of $2.6 billion in unconditional sales was only marginally behind the May 2010 result.

The languid property markets of Queensland and Western Australia led the gains in Australia. Yet our Sydney harbour businesses had one of their best results for months in May resulting in Double Bay becoming our top performer for the group. Our Lane Cove and Lower North Shore offices came second and third. This is the first time ever our top three offices all came from this one market.

New Zealand, particularly Auckland, remains sensational. Our Ponsonby business heading our New Zealand results. Why is the Kiwi market so strong?

Indonesia, again, created a remarkable record. More proof that markets eventually turn! The group’s rural and commercial results are more subdued.

A sale for $12.7 million at Sanctuary Cove (pictured above) during the month proved there is always a buyer for the highest quality property. This sale will astonish many Gold Coast watchers who have lost, we suggest prematurely, faith in the Gold Coast.

The Group’s Loan Market almost set a new record at $620 million in approved housing loans - a further endorsement that buyers interest is on the turn from hold to active.

What’s new at Ray White?

The Group’s Wealth Conference on the Gold Coast, held in early June, brought together over 600 Property Managers. Conference interviews with investors confirmed that their expectations in performance from their Property Managers is increasing.

Too much is at stake for haphazard management processes. Delegates were presented with case studies showing dramatically different rates of growth in property management portfolios, with the highest operating practices taking the lion’s share of business opportunities.

A remarkable story where Ray White’s Drummoyne office (Chris Wilkins, Principal), found the absent owner of a property that we had been managing for 15 years, resulting in a cheque in excess of $100,000 in retained rent, achieved remarkable media coverage. Good news stories of real estate agents do exist!!

With the anticipation of improvement in the market, there is a renewal of interest in the opening of new real estate offices. As might be expected, new office activity in Auckland is strong. Sydney, also, has a number of new commitments - particularly in the inner city markets, that support growing confidence.

The Group’s Hotel division continues to achieve important sales, the most recent being the Pottsville Hotel in northern NSW and the management rights for the Grand Apartments on the Gold Coast.

The release of ‘Living’ - a weekly colour guide to outstanding Sydney and regional NSW property is already a favourite with sellers and buyers. We continue to see great appeal in integrating the exposure of property with different online/offline products.
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