PROPERTY A
PUBLICATION
NOW
ISSUE 17
WHAT’S INSIDE 2
CEO: A message from Glenn King
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Market: Experts preview the year ahead in property
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Industry: Digital settlements launch in the ACT
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International: Australia’s world-first solution set to make a splash abroad
10-11:
Security: Australian Cyber Security Centre shares the tools you need to stay safe
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Welcome to 2022 An update from Glenn King, PEXA CEO
Welcome to the first edition of Property Now for 2022. Despite the COVID-19 challenges we’ve been facing as a community in recent weeks, I hope you were able to have an enjoyable and restful festive season with family and friends.
Casting an eye forward, a key focus for PEXA will be working to ensure settlements are as seamless as possible for all Australians.
We enter this year on the back of another successful 12 months for industry, with property remaining in high demand right throughout December – keeping us all undoubtedly very busy.
It’s this goal that underpins our mission to transform property experiences for everyone – for the benefit of our members, customers, partners, consumers and the Australian economy.
Though we’ve been tested, we’re privileged to be where we are today – supporting industry with a home-grown property exchange solution, helping ensure the sector has continued to flourish throughout the pandemic.
I can’t wait to see what 2022 has in store for us – happy reading.
We also closed out 2021 by welcoming the ACT to the digital settlement 2
network. This is another exciting milestone, and we look forward to working with all in the nation’s capital moving forward.
Glenn King Group Managing Director and CEO, PEXA Group
Industry experts analyse 2021 and share their 2022 property predictions Records tumbled throughout 2021 as the property market boom stretched to all corners of the country.
With consumer demand remaining buoyant as we enter 2022, we asked sector leaders and industry experts from across the nation about their thoughts on the year that was and what they see within the crystal ball for the year ahead.
REINSW CEO, Tim McKibbin
started to see supply increase – and while we didn’t have the same skyhigh registrations, we continued to see this significant consumer demand more evenly disbursed across an increasing number of properties.
2021 in review “It was once again a year like no other within our New South Wales property sector.” “From a rental perspective, there were challenges for both landlords and tenants alike – with property managers working tirelessly to keep things aligned. I don’t think they truly got the recognition they deserved for the incredible work they’ve done in recent times.” The highlights “Looking at property sales, in the Sydney metropolitan area, put simply, the market was on fire. It wasn’t uncommon for agents to have 15 or more people register for a single auction – and you just don’t see that level of interest in normal times. “Towards the latter part of the year, we
“There was consistently strong interest in our regional markets as well – so much so that we did really struggle to see enough listings to keep up with the interest as people craved that space.” 2022 preview “I think 2022 is going to be very similar to 2021, given all of the fundamentals driving the market are still present – low interest rates and high demand which continues to exceed supply. “Though we may not see the same double-digit pricing increases, I’m still expecting to see healthy growth throughout the months ahead, with regional areas in particular looking like they’ll remain extremely popular as well.” 3
REIWA President, Damian Collins 2021 in review “2021 saw a remarkable resurgence in the Perth property market, with low stock levels and strong buyer demand fuelling price growth. According to CoreLogic’s Home Value Index, in 2021 we saw Perth home values increase 13.1 per cent and regional home values increase 15 per cent.
The highlights “After a long and sustained downturn, it was good to see the WA market thriving again with many people recognising the great opportunity in our local property market. “While on the east coast the dream of home ownership is out of reach for many people, it’s pleasing that even with 13 per cent growth over the last 12 months we are still the most affordable state in the country.” 2022 preview
“We also saw a significant lift in volumes as people took advantage of the strong conditions and low interest rates to sell properties and upgrade their homes.
“We predict another strong year for the WA property market, with our 2022 outlook anticipating a further 10 per cent growth to Perth house prices this year.
“Despite the strong price growth, WA was still the most affordable state for housing in the country, according to the Real Estate Institute of Australia’s (REIA) latest Housing Affordability Report for the September 2021 quarter.”
“Regionally, we also expect market conditions to hold strong in 2022. We see lifestyle being a major growth driver as the COVID-19 pandemic continues to unfold and the working from home trend gains momentum. “WA has some of the most affordable housing in the country, and this combined with our great lifestyle opportunities should make for another strong year, particularly once borders open and migration resumes.”
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REIQ CEO, Antonia Mercorella 2021 in review “There’s no doubt that 2021 was an extraordinary year for the Queensland real estate industry, with high buyer activity and rental demand spurred on by our State’s rising population, with Queensland becoming the number one place in Australia for interstate migration. “While real estate agents have welcomed the remarkable demand for buying Queensland property, it’s important to remember that a hot market also brings certain challenges to the real estate profession, such as increased competition for limited listings and resourcing required to respond to high levels of enquiry. “With low levels of stock coming on to the market, and incredibly tight vacancy rates, it can also make for an incredibly challenging environment for disappointed and frustrated renters and buyers.” The highlights “I think in Queensland we can be incredibly proud of the fact that despite the challenges brought on by the pandemic, the real estate profession has been able to continue to trade and flourish in both the sales and rental market during 2021. “While Queensland was fortunate not to have the same level of lockdowns and restrictions as in southern states, when these limitations did arise, agents were able to keep real estate going by embracing technology and
adapting to new ways of operating. “In 2021, the REIQ continued to advocate on behalf of the industry on the controversial rental reforms that passed in Parliament in October, leading to an outcome that was vastly improved from initial proposals that would have significantly damaged our State’s rental market and created the most onerous rental laws in the country. “This outcome was a great reflection of the efforts of the REIQ and many members and supporters on this important matter.” 2022 preview “Queensland has an incredibly exciting future. Queensland was already the state to watch, with the highest levels of interstate migration, comparative great affordability and liveability, and the significant transformation and change that our capital city is already in the midst of – gaining even more recognition and attention on the global stage as the host of the Brisbane 2032 Olympic Games. “While predicting what’s next is simply crystal ball gazing, Queensland has all the fundamental economic ingredients for a strong market as we head towards 2022, and there is certainly no sign of it slowing down yet. “With January – a typically quiet month for real estate – already starting in a very heated way with plenty of buyer demand, it looks likely that it will be another hectic year to come for Queensland’s real estate industry.” 5
ACT takes next step with four-party property settlements By Jarrod McAleese
The Australian Capital Territory (ACT) continues to tick off key milestones, with four-party property settlements now seamlessly flowing through within the nation’s capital. The ground-breaking first matter was completed by Velocity Conveyancing and National Australia Bank (NAB), who were the representative parties for the buyer, a Canberra family purchasing their first home, supported by Chamberlains and Commonwealth Bank of Australia (CBA) who acted on behalf of the seller.
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Today, more than 80% of all property settlements are processed digitally. This ensures 20,000 Australian homebuyers and sellers each week are serviced by a homegrown, globally unrivalled exchange experience – with Territory residents now benefitting from the system.
Local consumers will soon also be able to utilise PEXA Key – an award-winning application which provides high-level settlement tracking and importantly, a secure method for homebuyers and sellers to exchange bank account details with their lawyer. Velocity Conveyancing’s Directors, Andrew Satsias and Peter Romano, said: “The introduction of electronic conveyancing is a monumental change to the settlement process in the ACT and will deliver both efficiencies for lawyers and significant savings for consumers. We commend both PEXA and the ACT Government for their innovation and we’re excited to see more progress in 2022 and beyond.” Chamberlains’ Senior Lawyers, Eliza Carter and Ben Hatte, Director said: “We have always advocated for technological advancements in our industry, and we feel that PEXA is an integral part of bringing the ACT into step with the rest of the nation.
“Our clients are able to receive their funds instantaneously, register their names on title and engage with PEXA Key to securely communicate account details and oversee the settlement process. We will continue to advocate for the uptake and eventual mandate of electronic transactions in the ACT we look forward to engaging with our colleagues in this space.” PEXA’s Chief Customer Officer, Lisa Dowie said: “Buying and selling a home is a landmark occasion in one’s life – and it’s an honour to be helping facilitate these special moments for ACT residents. “This is another huge stride forward for the local property network. I’d like congratulate the trailblazing organisations involved and look forward to many more successful settlements in the Territory to come.”
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Digital conveyancing coming to the United Kingdom in 2022 PEXA, operator of the world’s first digital property exchange platform, is on track to launch its first product in the United Kingdom this calendar year. This exciting milestone will see PEXA release its remortgage platform for UK citizens – and it couldn’t arrive at a better time. UK Finance recently reported that 74% of borrowers are on fixed rate
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mortgage products, leaving a sizeable pool of consumers vulnerable to unforeseen interest rate spikes. The representative body also revealed that the number of homeowners refinancing properties
has already reached its highest level in nearly two years as at the end of 2021. With interest rates rising, and the cost-of-living climbing, capacity in the conveyancing system will be tested once more in 2022 as a significant number of consumers seek to remortgage, in order to cut household bills. Unlike Australia, the UK conveyancing and property completion sector is highly fragmented, with the settlement and lodgement process evolving very little over the last 150 years. The lack of a centralised, coordinated exchange platform has added significant time, risk, stress, costs and uncertainty for UK consumers wishing to buy and sell their home.
PEXA’s UK based team, led by PEXA UK CEO James Bawa, together with industry experts in Australia and global software consultancy, ThoughtWorks, have been working to accelerate the development of what would be the first bespoke international property exchange platform of its kind. As part of a critical milestone, a group of lenders, making up a significant proportion of the UK remortgage market (including major banks, mid-tier, building societies and neo banks) is currently undertaking product testing as part of critical Bank of England integration. PEXA is also continuing to work closely with HM Land Registry, as well as government departments, regulators and industry peak bodies. “This is an incredibly exciting time for everyone at PEXA, but also the entire UK home buying and selling industry and UK consumers.” “We are taking all the ideas, feedback, and knowledge gained from more than a decade of engaging closely with the Australian sector, with the aim to adopt a similar process to smoothly revolutionise a sector in the UK that has not changed since Victorian times,” said Bawa. The launch of PEXA’s remortgage platform is slated to be followed by plans to deliver a seamless sale and purchase exchange. Keep an eye out for further developments in Property Now in the coming weeks and months. 9
Equip yourself with the best tools to stay cyber-secure By Kat Leonard
Though industry has enjoyed a well-deserved break over the recent holiday period, unfortunately, cyber-crime has not stopped – and will continue to be a prominent threat as we move into 2022. The ACSC’s latest Annual Cyber Threat Report shows the cyber threats facing Australian small and mediumsized businesses are growing.1 How can ransomware affect you and what can you do about it? When ransomware gets into your device, it makes your computer or its files unusable. Cybercriminals use ransomware to deny you access to your files or devices. They then demand you pay them to get back your access. Ransomware and business email compromise is a threat for every Australian organisation and individual. Cybercriminals use emails to pretend to be business representatives. They also use compromised email 10
accounts of employees. The risk to a business or individual who has their email account targeted by scammers and cybercriminals could result in catastrophic financial loss. In 2020, the accounts department of a QLD business received six invoices from their Managing Director on a Saturday via email, asking that they be paid as soon as possible. The accounts department paid three of the invoices, totalling more than $100,000. The following week, the accounts department received another large invoice from the Managing Director. The accounts department approached the Managing Director who had no knowledge of the invoices. On investigation, their email account had been hacked and a cybercriminal had
been impersonating the Managing Director to send out fraudulent invoices. Utilising all the tools available to you is key in protecting your business and clients from cyber-crime. Keep your business and staff email accounts secure by using complex passwords and multifactor authentication, back up your data and keep a copy online, and do not click on suspicious links. The ACSC Partnership Program can help provide valuable layers of defence. The initiative enables Australian organisations and individuals to engage with the ACSC and fellow partners, drawing on collective understanding, experience, skills and capability to lift cyber resilience across the Australian economy. The ACSC Partnership Program is available to a range of organisations and individuals The ACSC Partnership Program is delivered through the ACSC’s network of Joint Cyber Security Centres (JCSCs), physically located in Adelaide, Brisbane, Melbourne, Perth and Sydney, along with outreach services virtually located in Darwin and Hobart. Many owners and operators of small businesses don’t have the time or resources to dedicate to cyber security. However, there are simple measures that a small business can introduce to help prevent common cyber security incidents and help you
get ahead of a cyber incident. PEXA’s Chief Information Security Officer David Willett says that partnering with the ACSC just makes sense for PEXA. “The ACSC already does an excellent job of bringing industries and businesses together to help combat evolving cyber threats. “Given the ever-increasing threat to the property sector in Australia, this partnership helps leverage PEXA and the ACSC’s unique threat intelligence to reach a broader audience and further reduce the impact of cyberattack to our industry,” said Willett. In addition to exploring the partnership program, industry members can access the ACSC’s Small Business Cyber Security Guide – specifically designed for small businesses to understand, take action, and increase their cyber security resilience against ever-evolving cyber security threats. The language is clear, the actions are simple, and the guidance is tailored for small businesses. If you believe that you may be a victim of cyber-crime and would like to report a cyber incident, or are just looking for advice, visit cyber.gov.au or call their hotline on 1300 CYBER1 (1300 292 371) operating day and night, seven days a week. 1 ACSC Annual Cyber Threat Report 2020-21 | Cyber.gov.au
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“I promise to help end homelessness.” The Thomas Family, Melbourne, Victoria
Every night 116,000 people in Australia sleep homeless. While another 1.5 million live in serious housing stress. We have a housing crisis. We can’t let this go on. And with Homes for Homes, we won’t.
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Make yours at homesforhomes.org.au