President’s report Pages

Richard Simpson

REIV President Following unprecedented growth of over 23% in the Melbourne median house price during the past two years, four interest rate rises by the Reserve Bank of Australia in quick succession have contributed to a slight fall (-2.6%) in the Melbourne median house price for the June 2022 quarter, as home buyers’ purchasing power is reduced by higher interest costs and increases in the overall cost of living.

The Victorian property market has been quite resilient and, in our opinion, is unlikely to experience the significant falls predicted by many economists and bankers. On the other hand, the rental market has bounced back well, particularly in middle and outer Melbourne suburbs and in regional Victoria. The low vacancy rates are beginning to put some pressure on rents which may in turn assist owners offset increases in compliance costs, interest and taxes. Unfortunately, many rental providers have taken advantage of the strong sales market to sell their investment properties pushed by the increased regulation costs associated with the recent changes to the Residential Tenancies Act and increases in fees and taxes, particularly land tax.

The Commercial market remains patchy with good sales results being achieved for properties offering long leases to quality tenants, while the increased cost of building has dampened the demand for residential and commercial development projects. Retail leasing is difficult, especially in and around the CBD, as office workers are still yet to return to their offices on a regular full time basis.

Quentin Kilian joined the REIV as our CEO only five months ago and is already making significant progress. With many years of real estate and advocacy experience he was able to hit the ground running. Offering fresh eyes and perspective he is making great strides in building relationships both within and outside the REIV, re-enthusing, supporting and leading the REIV team, making valuable changes and inspiring new ideas. Within days of joining the REIV, Quentin took the lead in developing the REIV’s Property Market Review submission. The Board thanks those Chapter Committee members who contributed to our position paper which is available for Members to review on the REIV website.

Quentin and I recently met with the Minister for Consumer Affairs, Melissa Horne, to discuss several pressing issues including the Property Market Review, an interim certificate to allow Agents Representatives undertaking the new course to work while they study to assist with the shortage of real estate staff, particularly property managers, mutual recognition of interstate qualifications and S55 of the Estate Agents Act. The Minister was very receptive to our concerns and has asked her staff to look into each matter, particularly around removing the roadblocks to employing more real estate staff.

REIV Life Membership presentation to George Thomson Jr, a Member since 1951.

The REIV strategy was reviewed and confirmed by the Board in February 2022. Good progress has been made on all projects and as they come to fruition, those that have a direct and visible impact on Members will be advised to you. You should already have seen more variety in the types of online professional development offerings available and current Agents Representatives keen to achieve their license have the facility to gain the new qualification through a government supported REIV developed Fast Track program. In June, the Board approved the 2022/23 budget which includes provision for the redevelopment of the REIV website to make it the go to resource that it really needs to be.

In addition to an ongoing emphasis on value-added services, we are now also turning our attention to defining REIV’s culture and identity. How we operate and are perceived by Members, employees, government and other stakeholders and the public is as important as what we do. The Board and Management are working closely on the development of REIV values which will be published in due course.

One likely outcome of the Property Market Review is the introduction of mandatory continuing professional development as a condition of every agent’s license renewal. What the requirements will look like is completely unknown at this time, but the REIV will participate actively in their development and implementation and ensure that the REIV’s professional development Thank you to all our Members for your continued support of the REIV. There are exciting times ahead in real estate and the REIV will remain at the forefront of our profession as its natural leader.

offerings and CPD requirements enable our Members to adjust and comply quickly. Our Members have an advantage by virtue of the REIV’s own CPD framework that requires Members to complete a compulsory Ethics Module and achieve a minimum number of CPD points each year – some through REIV activities and events and others earned through in-house or external courses, conferences or other events. Getting into the habit of setting aside time to refresh or expand your professional expertise and ensure that you satisfy your membership obligations has never been more important.

Work is also underway to develop the REIV’s State Election Platform, which will be published closer to the election campaign later this year. Property Taxes will, naturally, comprise a core element of our positioning and will build on the excellent REIA advocacy in the run up to the Federal election and in ongoing engagement with politicians and their advisors. Given the importance of this topic to our Members and their clients and a host of other players in the Victorian Property Sector, we have initiated engagement with a number of kindred associations to explore ways in which we can maximise the power of our collective voices.

The Board’s Nominations Committee has been charged with the task to fill the Director vacancy following Adam Docking’s resignation earlier this year. The response from Members to the call for nominations was excellent and having completed first interviews, the Nominations Committee, Chaired by Andrew Meehan, will be bringing its recommendations to the Board in early August. At the same time the Nominations Committee will present recommendations to the Board for the appointment of a new Additional Director to succeed Michael Clements. Michael joined the Board in April 2019 and his clear thought processes, expertise and perspectives have been invaluable to the Board as a whole as well as to individual Directors. We wish Michael the very best with his young family and in his role as a Director of Harris Carlson Lawyers.

Finally, thank you to all our Members for your continued support of the REIV. There are exciting times ahead in real estate and the REIV will remain at the forefront of our profession as its natural leader.

Richard Simpson REIV President