J u l y
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chris Gray Tim Lawless REI Super
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
WELCOME TO THE
July 2022
ISSUE OF
C21 MARKET PULSE
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
Cover image: Kam Idris on Unsplash
C O N T E N T S J uly
INTEREST RATES
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MARKET MATTERS
Will a 2 - 3% interest rate rise change the
10 ways we help sellers set realistic
property market?
price expectations
Your Empire CEO, Chris Gray
Century 21
PROPERTY MARKET UPDATE
05
HOME & LIFESTYLE
Home Value Index continues to fall,
Decorating your home with Hamptons style
down -0.6% in June
Century 21
CoreLogic Head of Research, Tim Lawless
LIFE INSURANCE
06
Why life insurance cover needs to change as you grow REI Super
C21 MARKET PULSE
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CENTURY 21
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I N T E R E ST R AT E S
WILL A 2 - 3% INTEREST RATE RISE CHANGE THE PROPERTY MARKET? B Y C H R I S G R A Y, C E O, YO U R E M P I R E
One of the reasons I DIDN’T have the most successful property show on TV was that I told the truth about the market as I saw it. I didn’t have any sensationalising headlines or claims that the market was going to crash to it’s lowest level yet and nor did I predict the latest greatest upswing that was about to happen in a particular suburb. I didn’t jump on the latest NRAS or NDIS fad and I didn’t strategise on how to get the biggest tax deduction. I told viewers that I thought the
worry if you’re investing for the
for a mortgage, especially if you’ve
market would be fine for the next
long term.
done it recently after the Royal
12 months and they could go off and relax and tune back in, in a years time for another update on where I thought it was headed. That’s not great for viewer numbers, but that’s what I honestly believed was right. In the ten years I was on Sky News Business, I don’t think anything really changed in the market, especially when you look
I think exactly the same now. Sure, interest rates have risen and are
A 1% - 2% rise is $10k - $20k on
likely to rise by more in the future.
a $1m mortgage and sure that’s a
How far will they go – I’m not sure.
fair amount of extra money to find.
10 years ago we were all used to paying 7%, 8%, 9% and so if you put that into perspective 3% - 4% is still cheap. So is 5% or 6%. It’s just because we’re used to paying 2% -
back in hindsight.
3% that we’re in shock.
And that’s because I am an
But we really shouldn’t be in shock
investor that invests for decades after decades. If I buy a fantastic property in a great location, why would I ever sell it? I’m not clever enough to predict the highs and lows of the market and so why even
Banking Commission in 2020.
or panicking to sell as surely everyone including Blind Freddy knew they were going to rise. Even if you didn’t have that foresight, the banks will have done it for you when they assessed your serviceability C21 MARKET PULSE
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CENTURY 21
However, it might cost you less if it’s an investment property as you might be able to claim up to 50% back in tax. Rents are starting to rise too which will counteract that extra cost. Think yourself lucky that you haven’t got a $10m mortgage as each 1% rise would be another $100k you’ve got to find. What I do know is that a lot of property is still in very short supply, especially if you’ve bought in the blue-chip areas around our major
capital cities where there’s three
were rewarded significantly when
about something you can’t control?
storey height limits and every
it did bounce back. A number
I concentrate my time on practical
property is butt up next to the next
of our Sydney clients picked
things I can control, such as making
one and therefore no more supply.
up a $1m property in 2020 for
sure I have enough cash buffer to
There’s more people going back
$900k - $950k to see it bounce
last me through the short term.
to work in the offices and so the
back to $1m 6 months later and
demand should still be there. The
then up 25% to $1.2m - $1.3m in the
reason inflation is going up is that
2021 upswing that we all saw last
people do still have money to spend
year. The Melbourne and Brisbane
and there’s still plenty of them
offices had similar examples.
buying property.
I’m definitely not an economist,
Sure, some property is going to
a financial planner or a practising
drop and that will cause a number
accountant and do not know what
of people some issues, especially
the future holds. I base my views
if it’s in massive supply and there’s
on what I have experienced over
limited demand. There could be
the last 30 years investing and
temptation to panic sell and that
what I have learned from experts
might be right for some people. But
around me. I tend not to listen or
I think for the masses, most would
get my advice from friends, family
regret it down the line as what I
and colleagues unless they are
property on their behalf. Chris has spent
remember from the GFC, the credit
specialists and making money
over 10 years as the host of ‘Your Property
crunch and COVID, most markets
themselves from doing what they’re
did tend to bounce back within
preaching to others.
a year or two. Lots of people took advantage of
don’t waste any time worrying about
that uncertainty in the past and
them. Why waste time on worrying
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Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing
Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry
I can’t control interest rates and so I
C21 MARKET PULSE
ABOUT THE CONTRIBUTOR
CENTURY 21
figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney
EXPERIENCE THE C21 DIFFERENCE
At Century 21, our understanding of the local property market, combined with our people first approach, means we are able to achieve superior results for you. Contact your local C21 agent today to help you reach your property goals.
Visit: C21.com.au
P R O P E R T Y M A R K E T U P DAT E
HOME VALUE INDEX CONTINUES TO FALL, DOWN -0.6% IN JUNE
BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C
Home Value Index shows Australia’s housing downturn builds momentum in June, driven by sharper falls in Sydney and Melbourne and weakening conditions elsewhere. CoreLogic’s national Home Value
CoreLogic Research Director,
continue to gather steam and
Index (HVI) recorded a second
Tim Lawless, noted the housing
become more widespread.”
consecutive month of value
market’s sharper reduction in
declines in June, down -0.6%,
growth coincides with the May cash
to be -0.2% lower over the June
rate hike, surging inflation and low
quarter. Continued falls in Sydney
consumer sentiment.
dwelling values (-1.6% month and -2.8% quarter) and Melbourne (-1.1% month and -1.8% quarter) were the primary drivers of this month’s steeper drop, but housing values were also down in Hobart (-0.2% month and -0.1% quarter) as well as regional Victoria (-0.1% month and +1.2% quarter). Every capital city and broad rest of state region is now well past their
The combined regionals index remained in positive growth territory in June, albeit slightly, rising 0.1%, reducing quarterly
“Housing value growth has been
growth from a peak of 6.6% in
easing since moving through
April last year, to 2.0% over the
a peak in March last year, when
three months to June. In contrast,
early drivers of the slowdown
the combined capital cities index
included rising fixed term
was down -0.8% over the June
mortgage rates, an expiry of fiscal
quarter, reducing from a peak of
support, a trend towards lower
7.1% over the three months to May
consumer sentiment, affordability
last year.
challenges and tighter credit conditions,” he said.
Unit markets are holding their value a little better than houses
“More recently, surging inflation
across the largest capitals. Sydney
and a rapidly rising cash rate
recorded a -3.0% drop in houses
have added further momentum
values through the June quarter
Australia’s third largest city,
to the downwards trend. Since
compared with a -2.1% fall in unit
Brisbane, has seen growth in housing
the initial cash rate hike on May
values. Melbourne also showed a
values flatten out to just 0.1% in
5, most housing markets around
smaller quarterly decline in units
June, while Adelaide remains the
the country have seen a sharper
relative to houses at -0.5% and
only capital still recording a monthly
reduction in the rate of growth.
-2.4% respectively.
“Considering inflation is likely
Click here to read the full article
peak rate of growth as trend rates eased across the remaining markets.
growth rate higher than 1.0% (1.3%). Growth in Perth’s housing values, which were temporarily showing a second wind as state borders reopened, are again losing steam with values up 0.4% in June.
to remain stubbornly high for some time, and interest rates are expected to rise substantially in response, it’s likely the rate of decline in housing values will C21 MARKET PULSE
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CENTURY 21
LIFE INSURANCE
WHY LIFE INSURANCE COVER NEEDS TO CHANGE AS YOU GROW
BY REI SUPER
Sometimes we don’t think about our life insurance needs until it’s too late. Changing circumstances, rises or falls in income and whether or not the kids are still at home all affect the amount of coverage we need. JUST STARTING OUT : KICKING OFF A CAREER AND SAVING MONEY FOR YOUR LIFE GOALS
want is to pay for a policy for 10 or
at this stage of your life, it’s likely
15 years, then have to cancel it and
that the bare minimum you will aim
end up needing a benefit you don’t
to cover is the debt on your primary
So you’ve left school, completed a
have in place.
residence. The last thing you want
trade or a degree and started out in your progression. You might not be thinking about life insurance at this
Level premiums can change over time but the increase isn’t affected
is to leave your family without a roof over their heads.
by one’s age as stepped premiums
But you should consider other
are, but the upfront cost is higher and
outgoings – school fees, car
are often much more expensive than
payments and so on. And if you’re the
the stepped equivalent when you
primary wage earner and your partner
As you’re starting out, you might
first take out cover. Level premiums
is the primary carer, you may want
be thinking more about saving for a
may increase, but you pay a more
enough coverage so the children
home, getting some holiday savings
consistent amount year on year.
can be looked after until they’re old
stage of your life, but ensuring you have the right cover is something you definitely need to consider.
under your belt and enjoying life. But basic life insurance cover will see you on the way to preparing for financial wellness for the rest of your life. When you’re starting out with life insurance, you need to think about the amount of premiums you might want to pay. Stepped premiums can be more popular for young people, as they start out low and increase year on year. But you will need to think ahead and make sure you can cater for those rising premiums as you get older. The last thing you
Summary: A basic life insurance cover will see you on the way to
enough to fend for themselves.
Click here to read the full article
preparing for the rest of your life. However, this is a good time to think ahead and make sure you can cater for growing needs as you grow older.
THE PRIME YEARS : BUYING A HOUSE, MOVING IN WITH YOUR PARTNER OR HAVING CHILDREN You’ve got a home (and probably a mortgage), as well as kids and all the costs that come with them, including school and medical fees. When you consider your coverage
C21 MARKET PULSE
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CENTURY 21
DISCLAIMER Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall. This article was brought to you by Industry Super Australia. The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. May 2022.
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REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance. June 2022. REIS 8010
M A R K E T M AT T E R S
10 WAYS WE HELP SELLERS SET REALISTIC PRICE EXPECTATIONS The Australian real estate market is changing and it's more important than ever for real estate professionals to help sellers set realistic price expectations. In this article, we look at 10 ways our agents at Century 21 help you do just that. It's no secret that the market has
This helps sellers understand what
in your local market right now. This
shifted from a bull seller's market to
the current market is like and how
commentary backed up by data is
more of a normal real estate market
their home stacks up.
a great way to start the process of
and we're seeing more listings available for buyers to choose from. Adjusting your expectations as a seller can be key to achieving a successful sale in today's market. Here are 10 ways Century 21 agents help sellers set realistic price expectations:
1. USE DATA TO SHOW YOU HOW THE MARKET HAS CHANGED Century 21 agents have access to real-time data that shows where the market is right now. Relying on sales price data from 6 months ago, or hearsay is not a solution – there is an abundance of data to back up realistic price setting.
2. COMPARE YOUR PROPERTY TO SIMILAR PROPERTIES THAT HAVE SOLD RECENTLY We will compare apples with apples, or rather your home to others with the most similar attributes that have been sold recently in the local area.
3. EXPLAIN HOW PRICING AFFECTS BUYERS' PERCEPTIONS OF VALUE
price setting.
home, it can have a big effect on
5. HELP YOU UNDERSTAND WHY YOUR HOME MIGHT NOT BE WORTH AS MUCH AS YOU THINK IT IS
how people see it. If you price it
It can be a hard pill to swallow but
too high, some people might think
sometimes we have inflated ideas
that it's not worth as much as other
of the value of our own home.
homes in the area. But if you price
Honest advice is very important and
it too low, people might think that
Century 21 have been recognised
there must be something wrong
as Australia's #1 real estate
with it because no one would sell
company when it comes to quality,
for so cheap unless there was a
trusted service. Our agents start
problem. Finding the right price
with a realistic, real-time market
for the market is important so that
assessment of your property’s value
people see your home in the best
as part of pricing conversations.
When you set the price of your
possible light.
4. SHARE WHAT BUYERS ARE SAYING ABOUT OVERPRICED PROPERTIES
6. ENCOURAGE A PRACTICAL APPROACH TO YOUR TIMEFRAME FOR SELLING Century 21 agents help sellers be
News articles, feedback in local
realistic about their timeframe for
community discussion threads,
selling. We help them understand
recent home inspection comments
that they might not sell as quickly
from buyers on other sales, all help
as they want to, and that's okay. We
tell a story about what is happening
will work hard to get their home in
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PRICING PROPERTIES
front of as many people as possible
way that will make people want
issue and find a solution is our job
so they can find the right buyer and
to buy it . With local, national and
as property experts.
get the best possible price.
global reach via our websites,
7. OFFER ADVICE ON MAKING YOUR PROPERTY MORE APPEALING TO BUYERS Century 21 agents will offer recommendations on how a homeowner can make their property more appealing. We help sellers understand what buyers are
looking for and what you need to do to make your home stand out from the competition. This includes making simple changes like decluttering or painting the walls a new colour. We also advise when bigger changes might be necessary, like renovating the kitchen or bathroom. Making changes can help sell your home more quickly and for a higher price than if you did nothing at all.
8. SUGGEST STRATEGIES FOR MARKETING YOUR PROPERTY EFFECTIVELY Century 21 agents can help you market and style your house in a
along with a local marketing campaign across print, portals, email and social media we will maximise your property’s exposure. Opting to spend less than advised on marketing can often have a detrimental effect on your
Century 21 understands that the Australian real estate market is shifting to more of a normal real estate market and we want to help sellers set realistic price expectations. Our team of experts are here to
sale result.
offer advice on how you can make
9. BE HONEST ABOUT THE CHALLENGES OF SELLING IN TODAY'S MARKET
to buyers, what strategies you
Century 21 agents tell homeowners
about the challenges of selling
the truth about the challenges of
in today's market.
your property more appealing
selling in today's market. We will be upfront and honest if we think that it might be harder to find a buyer and work with you on adjusting expectations as part of the journey of selling your home.
10. HELP YOU UNDERSTAND THAT A LOWER PRICE DOESN'T MEAN THEY'RE GIVING UP Century 21 agents tell sellers that if they lower their price, it doesn't mean that they are giving up. Working with you to adjust a pricing C21 MARKET PULSE
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can use to market it effectively, and have honest conversations
Contact us today to learn more about how we can help you sell your home.
LANDLORD INSURANCE
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Full Accidental loss or damage cover
Why not, you’ve paid for the policy right?
Flood cover
With Landlord Insurance - Cover Guard Insurance has you covered.
Rent Default
We do not include delays, or excuses within our program. We are there when you need us most to ensure your claim is settled fast.
Loss of Rent cover up to 24 months and up to $2,000 rent per week
Cover Guard Premiums Our premiums are fixed by state and territory. These figures do not account for extra costs associated with extensions to the standard cover limits.
NSW
$430
QLD
$360
SA
$325
TAS
$300
VIC
$360
WA
$325
ACT
$385
NT
$420
Get the right advice for full peace of mind when it comes to your Landlord Insurance.
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we always have you covered
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HOME & LIFESTYLE
DECORATING YOUR HOME WITH HAMPTONS STYLE If you're looking to add a touch of Hamptons style to your home, you're in luck. This classic style is easy to achieve and can be adapted to suit any space. In this article, we will give you some essential tips for decorating your home in Hamptons style. So, whether you want to create a coastal oasis or simply add a touch of summery elegance, keep reading for some inspiration! CREATE A RELAXED AMBIANCE
So, ditch the knick-knacks and
The Hamptons style is all about
focus on a few key pieces that will
creating a relaxed and elegant
make a statement. A beautiful vase,
ambiance. To achieve this look, start
a piece of art, or a stylish lamp are
with a neutral colour palette. Think
all great options.
whites, creams, and light blues. Then, add in some natural materials such as wood and rattan. And don't forget the stripes! Whether you opt for nautical navy or summery sky
Here are some easy and practical ways you can inject a bit of
• Use patterns in hues of
Opt for pieces that are simple yet stylish. A good rule of thumb is to choose furniture that you would find in a chic beach house. Think wicker chairs, slipcovered sofas, and reclaimed wood coffee tables. When it comes to Hamptons style decor, less is more. That means
• Place windows strategically to let in lots of natural light. • Keep walls crisp and white. • Use oversize furniture to create a sense of luxury and relaxation. • Hang classic curtains – Hamptons style is all about classic elegance. • Use coastal colours to complement your crisp white primary palette. • Add plantation shutters for a touch of luxury and sophistication. • Curate some Nautical themed
avoiding clutter and keeping
decorations that tie in with your
your space feeling light and airy.
overall theme.
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end-goal when adding Hamptons elements to your home. So, add some plush throws and cushions, light some scented candles, and bring in some greenery. These
blue and grey.
C21 MARKET PULSE
and interest to the walls.
relaxed and inviting space is the
Hamptons-inspired space.
style is furniture with clean lines.
• Use wainscoting to add texture
finishing touches. Creating a
OUR TOP 10 HAMPTONS STYLING TIPS
Hamptons style into your decor:
Another key element of Hamptons
add warmth and character.
Finally, don't forget the all important
blue, stripes are a must-have in any
CLEAN LINES AND STYLISH ADDITIONS
• Install timber floorboards as they
CENTURY 21
simple steps will transform your space into a Hamptons haven that you can enjoy all year round! We hope you found these tips helpful! Now it's time to start planning your Hamptons-inspired space. Happy decorating.
