PROPERTY A
PUBLICATION
NOW
JAN 2021
WHAT’S INSIDE 2-3
Review: Easing of COVID-19 restrictions leads to Christmas settlement rush
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Analysis: Impact of the drop in overseas migration
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Feature: Pip Marlow, ANZ & ASEAN CEO, Salesforce on CX and innovation
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Best practice: How to streamline your remote working experience
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PEXA CEO update: A note from Glenn King
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Around the grounds: PEXA and industry updates
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Easing of COVID-19 restrictions leads to Christmas settlement rush Victoria witnessed a 43% month-on-month increase in property sale settlements for the month of December, according to Australia’s leading online property settlement platform, PEXA. December is often an active month for property settlements Australia-wide, with the Friday before Christmas historically the busiest day on the property sector calendar. December 2020 recorded a 2
two-year high with 79,187 settlements taking place nationally, including 1,711 settlements on Christmas eve with Australian consumers rushing to grab the keys before the New Year break.
“All those involved in the property settlement process brace for December activity, which in 2020 saw an increase in settlements of 22% nationally year-on-year when compared to the month of December 2019,” said Mike Gill, PEXA Senior Research Manager.
21,000 and Queensland closely followed with just under 20,000. Property sales settlements in Western Australia and South Australia remained consistent throughout 2020, with both regions seeing moderate increases across the second half of the year. PEXA was proud to play its role in providing a digital, secure and importantly non-contact property exchange to facilitate these transactions.
“Special mention must go to the conveyancers, lawyers, financial institutions and all those in the property settlement process who displayed flexibility, innovation and collaboration to make the buying and selling of property as seamless During this period, New South Wales generated the highest number of property as possible during an extraordinary sale settlements with more than 24,500, 2020,” said Mr Gill. “We saw property settlement numbers begin to recover following the easing of restrictions nationally in the second half of the year, however the rebound in Victoria was delayed due to the second lockdown,” said Mr Gill.
Victoria came in second with nearly
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Migration and property – the undeniable connection The closing of Australian borders to defend against the spread of COVID-19 has predictably given rise to numerous economic challenges, including a deterioration in our country’s population growth. The Treasury forecasts for FY20/21 indicate the lowest rate of population growth since 1917. This dip is mostly contributed to low overseas migration, which will fall from approximately 154,000 people in FY19/20 to around -72,000 people in 2020–21. But what does this mean for the property sector?
Weaker rental demand The drop in overseas migration is likely to have a softening effect on the rental market. Geographically speaking, Melbourne and Sydney will experience the greatest hit. In 2019, 84 per cent of all overseas migration flowed into the capital cities – three quarters of which arrived in Sydney and Melbourne.
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Bolstering this analysis are recent statistics shared by Domain stating that the length of time that Melbourne rental properties remain advertised jumped a staggering 40 per cent in November 2020 compared with the previous year. Additionally, more than a quarter (26.1 per cent) of all Melbourne houses and apartments listed for rent had their asking price reduced. Developer projects – existing and future The developer market plays an integral part in the rental sector, with both existing and future projects key to meeting occupant demand. The question on everyone’s lips is how will low migration impact this prominent area within Australia’s property industry? According to the Reserve Bank of Australia (RBA), in Sydney and Melbourne, the number of apartments estimated to be completed over the next two years is equivalent to around 4 per cent of the non-detached dwelling stock. In Melbourne, over half of apartments in the pipeline are located in the city and inner suburbs.
The President of the Urban Development Institute of Australia (UDIA), Simon Basheer, stated “Healthy migration levels into Australia have been one of the key catalysts for strong and prosperous economic conditions in this country. With the impacts of COVID-19 in terms of low net migration levels into Australia, we are at a risk of drag on the economy and housing markets until we return to pre-COVID levels. When COVID-19 hit, housing markets were impacted and this was a key reason the Commonwealth Government was quick to implement and extend the HomeBuilder initiative which has had a powerful impact on jobs, trades, construction and wages – particularly in the greenfield housing market. It has been a stellar example of smart, targeted and effective policy making and stimulus.” However, HomeBuilder grants do not benefit the entire property industry and the return of normal migration levels will be critical to the recovery of the semidetached and apartment products sector.
Simon goes on to say that “The UDIA is encouraging the Commonwealth Government to think through a strategy that ensures immigration returns as soon as practicable, so the market is sufficiently able to meet the future demand and Australia avoids an imbalance between supply and demand. That is particularly true of the higher density apartment market – including the build-to-rent sector. Build-to rent is at an embryonic phase in Australia, so hopefully the slowdown in immigration and population growth won’t impede its growth”. Nevertheless, property developers are staying positive. In a recent interview with ABC News, Jason Goldsworthy, national manager of build-to-rent for Mirvac, said “We really see COVID as a bit of a speed bump not dissimilar to the dip in the market of about two years ago.” Although the drop in overseas migration has had its effect on the property industry, the market holds strong. In December 2020, 79,187 settlements took place nationally, recording a two year high. While it may be some time before our population growth returns to normal, there is optimism that the market will be able to hold steady as the pandemic is seen off.
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CX and innovation – a fireside chat with Salesforce Customer experience (CX) and innovation are hot topics within the legal sector. Now more than ever, businesses are seeking to establish a point of difference in their service delivery – with a heightened emphasis on incorporating digital elements, as a result of the COVID-19 pandemic. 6
How can organisations embed values with their operations? What does truly exceptional service look like? How do you bring innovation to life? Who better to answer these key questions than world leading software company, Salesforce.
Founded in 1999, Salesforce assists organisations world-wide, big or small, deliver personalised experiences to their customers. Innovative in nature, it championed the replacement of traditional desktop customer relationship management (CRM) software with CRM in the cloud, making it accessible anytime from anywhere. Today, it employs close to 50,000 staff, with its technology utilised by more than 150,000 companies, including Spotify, Amazon Web Services and Toyota. Pip Marlow, Chief Executive Officer, ANZ & ASEAN, Salesforce, caught up with Property Now to share her insights. Q: Pip, as a leader, how do you instil Salesforce’s values within your teams? Pip: We have four core values – trust, innovation, customer success and
equality. Values are so important and certainly for us, they help bind every employee of the company together. They’re not for show and they’re not just pretty words – we put time, energy and resources behind them. In my role, it’s about championing the things we care about as an organisation, supporting our culture and helping create an environment where people can live those values. Q: What does excellent customer service look like to you? Pip: We try to have a holistic view of the customer – understanding who they are, what they’re doing and how we can help them. We support this by having systems in place to understand if that help isn’t being delivered at the right speed or standard. 7
We’ve also had a customer success team for a very long time. I think we were probably one of the first tech companies to embed that as part of our organisational design – which really exists as a reflection of our strategy. For that reason, it’s important to us that we’ve always had a business unit that is dedicated to understanding what the customer is trying to do and what they require from us – to ensure that their needs are met. We all have products and services that we want to sell to customers to help them do what they need and want to do. But more and more, we’re ensuring we align our moments of celebration, reward and recognition with the moments our customers are celebrating.
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Q: Innovation is a popular ‘buzz word’. From your experience, what does innovation look like in practice? Pip: For a long time, I feel that people viewed innovation as solely being associated with the creation of new products, which of course will always be important. But in support of this, we should all be looking at business process innovation and customer experience innovation. The example I use, which I think has been game-changing, is Netflix. What Netflix did is disrupt the customer experience – suddenly, you could ‘rent’ videos, without the prospect of a late fee and with no need for you to drive to a Blockbuster. At the end of the day, the product is the same – we’re accessing a TV show or movie.
Whether I went to Blockbuster to access the content, or I streamed it on Netflix, the product didn’t change – what’s been transformed is the distribution of that product and thus the customer experience of that product. I think using tech and data to disrupt industries and create new, more simplified experiences will continue to be something that we will see an incredible amount of innovation – I think every industry is ripe for disruption. Q: What is key to fostering an innovative mindset? Pip: You can’t be held back by existing conventions. I know people have said, “customers don’t want to do it like that, customers don’t want to do things online” – I think that’s a myth the past year we’ve endured has busted.
People have shown us that they’re prepared to do a lot of things in a digital environment that they’ve never done before. And so, people whose mindset is, “that’s not how customers want to do things” – I think they will be mostly surprised by how their competition goes and disrupts them if they don’t look at how they disrupt themselves. And I know in industries that have long histories, that can be hard sometimes. But you’ve got to listen to your customers, ascertain where they are and where they want to be. And we shouldn’t assume to know what our customers want – we should be giving them choice as part of that.
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How to make working from home, work for you Plan your home office As a conveyancer or solicitor, you probably face The first step is to prioritise what you need from your home office. Ask yourself tight deadlines and time the following questions: pressure, particularly around settlement. That’s why, when • Which room or area is best suited working from home, it’s critical to my home office? to maintain a professional • What type of work will I be doing? environment that will help you • When will I be doing most of my to stay focused and get the work? work done on time.
So where do you start? By having a plan of course. Follow these tips to make sure your home office is set up for success.
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• What equipment do I need? • Can I accommodate client meetings at home?
Define your workspace It’s up to you whether you turn the spare room into your office or set up each day in the dining room, but make sure you know when you’re ‘at work’ and when you’re ‘at home’.
If it suits, you could convert your garage into an office – it’s a great way to separate your work and home lives. However, you might want to swap that roller door for something more professional, especially if you’re planning to invite clients around.
Get comfortable Next, make sure you’re comfortable. If you’re constantly moving around because your seat hurts your back, you’re unlikely to get through all your work in a timely manner. Invest in a nice desk and a solid, ergonomic chair.
Stay organised Consider your environment and what helps you to focus. Some people enjoy listening to the radio while they work; others prefer to close the door and ignore the rest of the world. Either way, it’s important to stay away from things that might distract you.
IT desk on call, doesn’t mean you need to go without help. First, invest in some good quality tech you can depend on – a desktop, laptop or tablet – or a combination of these to give you flexibility. Then, if you get stuck, you can reach out online or by telephone to any number of tech companies who can help you out remotely – or even stop by your brandnew home office. You may also want to arrange ongoing tech support for things like data backup, internet security and software/hardware upgrades. Other practical considerations include a reliable printer and scanner, plus a stable internet connection and wireless signal. And don’t forget to keep your stationery cupboard well stocked.
Prepare for client meetings Finally, you’ll need to decide where you meet with clients.
Also, cut physical clutter with the right If you want to host client meetings in storage. Install shelves to store files or remove files altogether by going paperless your home, you’ll need a dedicated area that conveys a sense of professionalism. and digitising all your documents. A dining room could suffice, but it needs Have a routine but be flexible to be clutter-free. Your clients will need access to a bathroom and you may want In terms of your day-to-day routine, it’s to offer refreshments. best to aim to work set hours, with some flexibility. For example, you could start your day answering emails on a laptop at the kitchen bench, and then transition into your home office later in the morning. Just make sure you set boundaries so that you’re not checking your emails on your phone while you’re still lying in bed.
If your home isn’t appropriate for meetings, try using a quiet local cafe or another suitable location nearby. Alternatively, you might consider Skype or a similar online video app that makes it easy to catch up with your clients ‘face-toface’ without either party having to spend time travelling.
Sort out your admin and technology By following these tips you’ll be able to Just because you don’t have a dedicated
finalise settlements for your clients from the comfort of your own home office. 11
Welcome to 2021 An update from Glenn King, PEXA CEO
Welcome to the first edition of Property Now for 2021. I hope you had an enjoyable and restful new year. 2020 was truly a year like no other, but it was wonderful to see all of industry band together and continue delivering outstanding outcomes for Australian homebuyers and sellers – in spite of the various hurdles we encountered. The run-in to the holidays was exceptionally busy for our network – December 2020 saw the most properties settle online in a single month for two
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years and we’re excited to see continued progress for our sector in the months ahead. I hope you enjoy this month’s data, analysis and insights from across property and beyond and I look forward to another successful 2021, in partnership with you and the broader industry. Glenn King PEXA CEO
Around the grounds New South Wales and ACT The NSW Office of the Registrar General (ORG), NSW Land and Registry Services (NSW LRS) and PEXA are working to transition all property instruments online, as part of a commitment to a 100% digital portfolio. As part of this, NSW ORG has advised that certain Residual Documents must be lodged electronically from 22 March 2021. Read more here.
Victoria December was a record month for PEXA Key invitations sent in Victoria. We’re delighted to see you continue to embrace this resource, designed to help safeguard settlements for consumers. As always, we encourage you to please remain vigilant regarding cyber-security and make use of tools such as PEXA Key to keep your transactions safe.
South Australia To kick off the new year, PEXA has released its latest set of platform enhancements for members. In line with this, SA members can now benefit from Lodgement Verification occurring prior to stamp duty assessment – supporting a smoother settlement experience for homebuyers and sellers.
Queensland 2020 was a significant year for digital settlements in Queensland – with the majority of land transactions now being completed online. If you require any assistance in the new year, please reach out to one of our local PEXA experts and we look forward to collaborating with you in 2021.
Western Australia PEXA is delighted to confirm that the new Survivorship document is now available for lodgement in Western Australia. Per Landgate’s prior Customer Information Bulletin, when lodging electronically, evidence to support the application must be obtained, uploaded and attached to the survivorship application prior to lodgement.
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Do you have feedback, a question or a story pitch? Get in touch with us at industry@pexa.com.au
