Spring – it brings out such anticipation of strong action in the real estate market! But it also seems to foster interest rate increases! Such tension in the real estate industry balancing the psychology of interest rate talk and interest rate activity.
But, the only reality is in results and our mid spring month of October produced an okay result. Not as good as last year, but respectable enough. It’s just that the spring “sheen” was missing.
So our $2.4 billion month slotted into that definition – 10% down on the same month last year. It’s not as if there were not some great results. Victoria produced an all time best – how irrepressible is the Melbourne market! The recent much reported slow down in Melbourne’s real estate activity only lasted a month or two. The Indian rubber ball suddenly burst out once more. It remains the great story in Australasian real estate. New South Wales was, again, good quality. Western Australia sensed that all the mining activity, at last, is being positive to residential property. Yet, Queensland and New Zealand were still pretty tough. South Australia was steady as always.
Some strong Commercial sales were recorded in the month. Of particular reference was the NZ$35 million sale of a key industrial complex in Auckland by our newly established RW Commercial businesses headed by Bruce Whillans. It was a fabulous start to our new practice.
The Group’s Loan Market activity saw a reduction in volumes consistent with the reports from other mortgage brokers. It certainly seems that buyers are now being more cautious than their behaviour shown early this year. Yet, at month’s end, our mortgage brokers were processing better volumes than earlier in October.
Excellent rainfall in eastern Australia is bringing renewed confidence to the Rural sector. Good seasons are needed to re-establish capacity to bring the traditional level of activity to this sector.
BrianWhite Joint Chairman Ray White Group