M A R C H
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Kathryn Madden Tim Neary Tim Lawless Chris Gray Terri Scheer Landlord Insurance
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia
WELCOME TO THE
MARCH 2019 ISSUE OF
C21 MARKET PULSE
(02) 8295 0600
DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 Australia Pty Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability. For more information on our Privacy Policy please refer to: www.century21.com.au/privacy
C O N T E N T S M A R C H
SUBURBS TO WATCH
02-03
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DON’T D.I.Y WITH MAINTENANCE
These are Australia’s up-and-coming suburbs.
Landlords urged not to skimp on maintenance.
Home Beautiful Magazine Editor, Kathryn Madden
Terri Scheer Landlord Insurance
REFUGEE TO REAL ESTATE
04-05
PREPARING TO SELL
Wealth for toil? From Afghani refugee to real
5 key things that will help sell your home.
estate principal.
Home Beautiful Magazine Editor, Kathryn Madden
Real Estate Business Journalist, Tim Neary
HOUSING CORRECTION
OPEN HOMES 07
A selection of properties for sale with Century 21 from right around Australia.
Price of land rises and demand falls. Corelogic Head of Research, Tim Lawless
LOGIC VS EMOTION
08-09
Buying with logic and not emotion. Your Empire CEO, Chris Gray
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12-13
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S U B U R B S TO WATC H
These are Australia’s up-and-coming suburbs. BY K AT H R Y N M A D D E N ,
EDITOR, HOME BEAUTIFUL MAGAZINE
In the fast-paced world of real estate, it’s best to keep one eye on the future. “Areas that will trend going forward – rather than areas that are trending right now – are the ones to look out for,” advises Charles Tarbey, CEO of real estate group Century 21 in Australia. Up-and-coming locales generally boast a lower entry pricepoint – offering potential for capital growth – and are underpinned by growing employment hubs and new infrastructure. So where should you be setting your GPS for those Saturday morning inspections?
THE REGIONAL RISING STARS
to watch in Victoria. In NSW, demand
More and more of us are leaving
Hunter Valley region, while up north,
the big smoke in favour of more
Queensland’s “Golden Triangle” –
affordable suburbs just out of town.
the area between the Gold Coast,
“Regional areas are now almost part
Sunshine Coast and Ipswich – has
of the major cities,” explains Charles.
high-growth potential thanks to its
“With freeways and other modes of
thriving tourism industry, interstate
transport improving dramatically,
migration and strong local economy.
is rising in Newcastle and the
many of the slightly outlying areas will achieve better growth to a point of catching up with city locations.” According to The Price Predictor Index Report by real estate researchers Hotspotting, the suburb of Golden Square, Bendigo, has been steadily growing over the last year and may be primed for a property boom (the median house price is currently $325,000); Geelong and Ballarat are other spots
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THE NEW AUSTRALIAN CENTRES As falling property prices in Sydney and Melbourne dominate the headlines, Adelaide is quietly enjoying stable-to-slowly rising prices – and is proving the breakout star in the Australian market. Property researcher Location Score recommends Reynella, O’Halloran
Hill and Birkenhead as up-and-
values last year. Meanwhile, Hobart
as tech companies, apartment
coming South Australian suburbs;
stirs up mixed reviews – after a
developments and shopping centres
they all sit within 20 kilometres of
veritable housing boom, some
transform the once-sleepy suburb.
the city centre with median prices in
experts warn that the city may have
the $350,000-$450,000 bracket.
passed its peak.
Charles also points to Brisbane and Canberra as smart options for savvy investors – according to the Financial Review, the latter enjoyed a 3.3 per cent increase in property
Down south, the benefits of buying into suburbs like Flemington,
THE FRINGE DWELLERS While the big cities are synonymous with sky-high property prices, it’s not all bad news. The boundaries of Sydney and Melbourne continue to blur, and suburbs that were once considered on the outer are creeping into the inner. Auburn, for example, which used to be western Sydney heartland, is now nudging
Maidstone, West Footscray and St Albans are myriad: more bang for your buck, good access to the city and a melting pot of cultures and cuisines. The city’s other rising hotspot is clustered around the airport –Highett, Tullamarine, Keilor East, Lilydale and Airport West all experienced a surge in views on RealEstate.com.au in the final quarter of 2018..
the trendy inner west – but without the hefty pricetag. Closer to the city, Eveleigh has been tagged Australia’s answer to Silicone Valley,
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Article Link: https://www.homebeautiful.com.au/theseare-australia-s-up-and-coming-suburbsto-watch
R E F UG E E TO R E A L E STAT E
Wealth for toil? From Afghani refugee to real estate principal. B Y T I M N E A R Y,
J O U R N A L I S T , R E A L E S TAT E B U S I N E S S
R A F I YO U N E S , (PICTURED)
Director at Century 21 The Hills District Rafi Younes came to Australia as a wide-eyed 15-year-old United Nations refugee. Today, he runs one of the most successful C21 offices in the network.
heart of the western Sydney suburb
After finishing school, Mr Younes
of Castle Hill — but it all started
began working with the Australian
after just three months of being in
Army, teaching young Aussie
Sydney.
soldiers the Afghani culture and
“I went out shopping with my
language.
mother to a fruit market,” Mr Younes
After that, he read for a diploma
told REB.
in Property Services (Agency
“While my mum was shopping, I noticed an old lady struggling to
Management) and completed it a year later.
carry her shopping bags to her
“Whilst studying, I started
car. I approached her, and without
approaching local real estate offices
saying anything, I took her bags and
asking for any opportunities to work
years he’s been here, he’s toiled,
expressed I wanted to help.
and build my experience. Door
studied, learnt the language and
“When I returned to the shop, the
orn in Afghanistan, Mr Younes couldn’t speak a word of English when he first arrived, but in the 16
even helped the Australian Army prepare for conditions overseas. Mr Younes said that, a year ago, he was given “the biggest opportunity” of his life — to take over Century 21 The Hills District office in the
owner offered me a job on the spot, working Saturdays and Sundays. I
by door, I contacted every office there was with my cover letter and resume.”
told him in broken English that my
He landed a role at Eproperty
literacy wasn’t up to scratch. He said
Real Estate and worked there for
that was okay, and that he would
seven months, with “no pay, no
show me what to do.”
questioning and no complaining”.
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Mr Younes then started in a sales
Seven years ago, Mr Younes started
“The opportunity to partner with
role at Crown 1 Realty in Parramatta.
his own business in Merrylands,
Martin Baldacchino and own and
He did well quickly, showing
in Sydney’s west. He called it H&H
run the Century 21 The Hills District
remarkable aptitude.
Reality.
business came about.
“Within three months, I sold 30
“After eight months, the struggle
“After officially opening in June
properties,” Mr Younes recalled.
of building local brand awareness
2018 and being the first re-branded
and property profile, I made the
Century 21 in June 2018, our team
decision of joining Century 21.
has grown with the addition of Matt
“Every morning on the way to the office, I would drive street by
Wolfe and Sam Outch who both
street, stopping by construction
“Then my business grew
sites introducing myself to the
exponentially as the brand was well
builder and forming relationships
known, and combined with my work
with as many people as I could. My
ethic, I started placing a foothold
Mr Younes said that coming from
main aim was to chase developers
in the Merrylands market, breaking
such humble beginnings and now
directly rather than the typical
records and selling more off-the-
being at the forefront of the Hills
vendor selling their family home, as
plan developments than any other
District property market, he is
I had a passion for off-the-plan and
office in the area.
confident that his career in real
new developments.”
“In my first year with Century 21, I
He targeted one builder in
achieved centurion status writing
particular.
$664,000 GCC without a team,
“Every morning, I’d drop him off a coffee on the way to the office for two months straight before he gave me an opportunity of my first development listing. “Within three months, I sold the whole complex of 24 units and my journey with development listings
and it would set the tone for years to come — achieving centurion status consecutively until present, and being ranked no. 2 principal in Australasia in the first quarter of 2014.” Then last year, Mr Younes’ big break came.
started from there.”
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worked at the previous Century 21 office in the area for several years.”
estate will continue to grow and thrive.
The story Wealth for toil? From Afghani refugee to real estate principal, first appeared on Real Estate Business (REB). Article Link: https://www.realestatebusiness.com.au/ better-business/18320-wealth-for-toilfrom-afghani-refugee-to-real-estateprincipal
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HOUSING CORRECTION
PRICE OF LAND RISES AS DEMAND FALLS BY T I M L AW L E S S , CO R E LO G I C H E A D O F R E S E A R C H
Australian Housing Values Continued to Trend Lower in February With CoreLogic’s National Index Down 0.7%.
0.8 per cent to reach $279,949,”
According to Tim Lawless,
added Mr Reardon.
CoreLogic’s Research Director: “The
“Over the same period the number of residential land lots sold has fallen by 16.2 per cent. “After fi ve years of exceptionally
“The price of land for new
strong sales activity, a credit
residential building has continued
squeeze and a loss of market
to rise despite a fall in demand,”
confidence led to a rapid fall in new
said HIA Chief Economist Tim Reardon.
home sales and approvals. This slowdown is evident in land sales and unfortunately
The March 2019 edition of the HIACoreLogic Residential Land Report provides updated activity in 47
“Melbourne land prices on a rate per square metre basis are substantially higher than a year ago...”
markets across Australia, including the six state capital cities. “In the September 2018 quarter land lot prices across Australia rose
the fall in demand has not yet resulted in a fall in price. “The impact of the fall in demand for new homes and the rise in land prices places additional
pressures on the new home market and could further impede activity in the home building market.
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reduction in settled land sales is most evident across the Sydney and Melbourne markets where broader housing market conditions have been weakening since mid-to-late 2017. Despite the substantial drop in activity, land prices are falling at a much slower rate than housing prices in Sydney, while Melbourne land prices on a rate per square metre basis are substantially higher than a year ago compared with a 9.1% drop in dwelling values over the past year. The resilience of land prices relative to the wider market likely reflects the scarcity value of well-located vacant land in these cities.”.
LOGIC VS EMOTION
BUYING WITH LOGIC AND NOT EMOTION B Y C H R I S G R A Y, C E O, YO U R E M P I R E
There’s many mixed messages in the media and in our social circles about what’s happening in the property market and whether to buy now or wait. Most of us agree that buying an investment should be a 100% logical decision. Buying a home
TO B U Y, OR NOT TO B U Y WAIT
BUY NOW
1. It makes sense as consumer
1. The banking commission is out
sentiment is at an all-time low.
of the way.
is obviously emotional but there
2. Very hard to admit to your
2. The election is coming and if
should be some logic to it too,
friends and colleagues you’ve
they do grandfather any changes
given that it’s probably the biggest
bought as they’re bound to
then best to get in now before it
financial decision of our lives.
question your logic and
causes a rush.
When it comes to holiday homes,
intelligence.
that is often 100% emotional, but again you would hope that some logic would come into it rather than completely throwing your money in to the wind. So what are the arguments for
3. Have elections really changed
3. Property is bound to drop further
isn’t it?
things that much in the past?
4. You’re investing for 20+ years
4. The election is coming up which
and you’ll never be able to pick
is the perfect reason to sit on the
the bottom so invest when it’s a
fence and do nothing.
buyers market
5. That’s what contrarians do (“Be
waiting or buying now?
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fearful when others are greedy
and greedy when others are
fearful.” Warren Buffett
In my 25+ years of buying homes
that are selling short, some on
and investments both here and in
target and some that are selling
the UK, I’ve found that most people
over the odds.
are completely emotional when buying property even though they talk logically. The majority of people find it easier to sit on the fence and do nothing,
My personal strategy seems to have worked well over the last few decades and that is to buy when:
ABOUT THE CONTRIBUTOR
1. When I have the deposit to buy.
Chris Gray is CEO of Your Empire, a buyers’
rather than be uncomfortable and
2. When I can get a mortgage, and;
make a decision. It’s very easy to
3. When I have enough cash buffer
justify doing nothing: the market is still falling, the market is about to peak, rents are too low, interest rates are about to rise, tax is about to change, my job is uncertain, I’m
to fund me for a few years.
I think differently to most people though. I’m an accountant and don’t have any emotion
agency that buys homes and investments for time-poor people – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyer’s agent and mortgage broker. For more information visit
about to have a baby, I’m too bust
www.yourempire.com.au,
right now etc etc.
www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
We’re definitely seeing a range of sales prices in the market – some
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LEASING YOUR PROPERTY
LANDLORDS URGED NOT TO SKIMP ON MAINTENANCE BY TERRI SCHEER LANDLORD INSURANCE Landlords who skimp on maintenance with quick-fix solutions may find it ends up costing them more in the long run, according to leading landlord insurance specialist, Terri Scheer Insurance. Terri Scheer Insurance Executive Manager, Carolyn Parrella, said many landlords undertook renovations or modifications to their rental property to generate more profitable rental income and potentially increase the market value of their home. “Landlords need to ensure they
“This may give the false impression
“Seeking advice from a building
that improvements to properties are
inspector prior to a renovation can
achievable within tight timeframes
help ensure the house is safe and
and with limited building
accessible during and after any
experience.
construction works.
“While it may seem cost effective to
“They will be able to advise on
do the work yourself, an insufficient
building regulations and ensure the
DIY job could mean you end up
work being completed meets the
spending more money to fix repairs
highest standards.
in the long run. For example; a quick DIY fix could result in sub-standard workmanship or a legal liability claim if there is injury or loss resulting from a safety hazard that has not been attended to.” Ms Parella offers the following tips to help landlords improve and maintain their properties:
inspector when undertaking significant upgrades to the home is well worth it. “If you have limited building experience, hiring a qualified builder to carry out the work for you may ensure the upgrades are completed in a timely and cost effective way.
maintained for tenants,” she said.
SEEK PROFESSIONAL ADVICE
“With the rise in popularity of
“When considering renovating a
home renovation television shows,
property, it’s always best to seek
many landlords may be inspired to
professional advice,” Ms Parrella
repair or modify their properties
said.
keep their properties safe and well
“The cost of appointing a building
“It may also save you money in the long term if the project is completed to a quality standard”.
PROPERTY MAINTENANCE “Ensuring the condition of a
themselves.
property is maintained for the
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duration of each tenancy is critical
“This could result in damage to the
“Appropriate insurance can also
for landlords,” Ms Parrella said.
property or loss of good tenants and
protect you in the event of a legal
possibly result in an empty property
liability claim.
that isn’t generating an income.”
“Every landlord should have a
“Attending to maintenance issues promptly will also keep tenants
tailored landlord insurance policy
happy. “Putting off maintenance or insufficient repairs can damage your relationship with your tenants. “This may signal to the tenant that you don’t care about the property or value their concern for its condition. “Your tenant may begin to question their own commitment to the property and become more careless about it, or consider vacating when the lease expires.
that covers them for both malicious
LEGAL LIABILITY
and accidental damage, their legal
Injury or loss resulting from a safety
liability and loss of rental income.
hazard that has not been attended
“A standard building and contents
to may give rise to a costly legal liability claim for the landlord,” Ms Parrella said.
insurance policy generally won’t cover landlords for these risks.”.
“By taking pride in your investment, showing concern for your tenants and responding promptly to maintenance issues, you can avoid this.
ABOUT THE CONTRIBUTOR The information contained in this article is intended to be of a general nature only. Terri Scheer does not accept any legal responsibility for any loss incurred as a result of reliance upon it. Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy. https://www.terrischeer.com.au/
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Photographer: Chris Warnes
PREPARING TO SELL
5 KEY THINGS THAT WILL HELP SELL YOUR HOME BY K AT H R Y N M A D D E N ,
EDITOR, HOME BEAUTIFUL MAGAZINE
Images courtesy of Home Beautiful magazine.
It’s been touted one of life’s most stressful events: selling your home. There’s that neverending list of maintenance jobs, financial uncertainty, not to mention cupboards brimming with emotional baggage. And yet some careful preparation and professional advice can simplify the process and help channel your nervous energy into action. Here are our top 5 priorities when it comes to selling your property (and getting the result you want!).
1. A SPARKLING KITCHEN AND BATHROOM
regrout your tiles and give the
As the adage goes, kitchens and
the storage in both spaces – think
bathrooms sell houses. These
floating shelves, pull-out cabinet
purposeful spaces are generally
organisers and extra towel hooks –
the most expensive to renovate,
will also add value.
walls a fresh coat of paint (neutral hues are your friend). Amping up
so presenting future buyers with Photographer: Sue Stubbs
rooms that are ready to move into will pay dividends. If you don’t have the budget for an all-out reno, opt for smart cosmetic updates: install shiny new tapware, retrofit a modern vanity or walk-in shower,
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2. THE RIGHT AGENT They’ll be your go-to throughout the whole sales process, so take the time to find the right real estate agent – namely an experienced
professional who knows the
when it’s time to have your home
market, conducts themselves
photographed for campaign
ethically and listens to you. Do your
advertising.
As the saying goes, empty rooms
research, ask friends and family for recommendations, and look for results; it’s not about which agent has the most For Sale signs in your neighbourhood, but which boasts the highest portion of Sold signs.
FUNCTIONALITY don’t sell houses. “Your home
4. A GRAND ENTRANCE Note: grand doesn’t necessarily mean ostentatious. Rather, whether you live in a cottage or a castle, first impressions count, and your goal is to create an exterior that beckons buyers inside. Mow the lawn, hide the bins, arrange some pot plants and repaint the front door, fence and even your home’s facade. Once inside, continue to set the tone with a coat rack (sans clutter), drop zone for keys and bunch of fresh flowers – the mix of practicality and
should be presented as a fulluse home,” notes Charles. “Every unused area creates an opportunity for you to demonstrate the property’s versatility.” So that third bedroom that’s become a veritable dumping ground? Turn it into a study, playroom or super-covetable dressing room. Or, transform an unused zone by a window into a cosy reading retreat. The key is to make use of every nook and cranny – and remember that you’re selling a lifestyle, not just a pile of bricks and mortar.
panache will have buyers swooning. Honey, I’m home!
Photographer: Aaron Perkins
3. SAVVY STYLING Call in the professionals – a home stager comes equipped with clever styling hacks designed to broaden your home’s appeal. They might rearrange the furniture, create a chic vignette or neutralise a space to help prospective buyers feel more at home. “There’s a standard that can appeal to the majority,” explains Charles Tarbey, CEO of global real estate network Century 21 in Australasia. “It might seem expensive to have your home styled, but it may ultimately be more expensive – by lowering the sale price – not to.” A stager will also be of unparalleled value
Photographer: Armelle Habib
6. FABULOUS
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