PROPERTY A
PUBLICATION
NOW
JULY 2020
WHAT’S INSIDE 2-3 Industry news and a note from Glenn King, PEXA CEO 4-5 PEXA quarterly update 6-7 FY20 property market review and what’s to come 8-9 REIQ COO Josh Callaghan discusses innovation in practice 10-11 The shift to digital and why we need to remain cyber-aware 12-13 Digital marketing tips and tricks
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A note from Glenn King, PEXA CEO Welcome to the first edition of Property Now – a new monthly magazine, curated especially for you.
COVID-19 I think it’s fair to say we were all concerned with the potential impacts on Working closely with experts and leaders the property sector. within our sector and beyond, each Pleasingly, the floor edition will deliver thought-provoking did not drop out of insights on the property market, the the market and while latest innovations and technologies you we’re still in the thick of it, there’s a lot can expect from PEXA and other market to be positive about as we head into this participants and of course, practical new financial year. Read all about that coverage of legislative and regulatory and more in our inaugural edition. changes that may have impact on your business. Being a magazine for you, we’d love your feedback and contributions. If you have We want this to be of value to you; a a suggestion for story ideas or would like magazine that informs and excites while to contribute, please email: giving you easy access to the things you industry@pexa.com.au. need and want to know. Until then, take care. It would be remiss of me not to acknowledge the year we’ve all found Glenn King ourselves having. With the onset of PEXA CEO
at a glance at a glance
OUR CITIZENS
20,000 families every week settle on their homes through PEXA
5.4 million transactions processed safely through PEXA to date
$
907 billion
in property value transacted via the platform to date
75%
of all property transactions nationally now completed via PEXA
2
EOFY June 2020 EOFY June 2020
OUR MEMBERS OUR MEMBERS 20,000 families 99.9 % % 5.4 million availability 86%
OUR PEOPLE PEOPLE OUR
OUR CITIZENS
99.9
homes through PEXA
transacted through PEXA to date
$
907 billion
in property value transacted
75
8674%
+
Calls answered within a minute Member Effort Score of 50 is considered ‘excellent’
via PEXA
42% +
MES
Calls answered within a minute
MES
%
74
availability
63+
increase in refinance settlements completed on PEXA between FY19 to FY20
Member Effort Score of 50 is considered ‘excellent’
NPS
Net Promoter Score of 50 is considered ‘excellent’
63
+
NPS
79%
Employee engagement score
79%
employee engagement score
91%
Net Promoter Score of 50 is considered ‘excellent’
of staff feel they are part of an inclusive team
81%
increase in transfer settlements completed on PEXA between FY19 to FY20
91%
of staff feel they are part of an inclusive team
Around the grounds New South Wales and ACT More than 90% of all dealings are available to be processed electronically in NSW, with the COVID-19 Residual Lodgement solution enabling the delivery of those outstanding via PEXA. We’re continuing to work closely with all parties to progress to 100% digital and will update industry accordingly. Additionally, a September go-live is being targeted for the introduction of digital settlements in the ACT. Keep an eye out for more details on training, on-boarding and support.
Victoria PEXA is collaborating with Land Use Victoria and Victoria Land Registry Services to consolidate the digitisation of remaining out-of-scope documents. Currently, 97% of all dealings in the state can be completed electronically. In support of industry during COVID-19, a solution to facilitate lodgement of scanned paper dealings via PEXA remains available – as we navigate the current restrictions in place.
Western Australia June saw a 21% increase month-onmonth in digital property settlements in WA and in a further positive sign for industry, REIWA reported that its June data showed the strongest month for sales in Perth since 2015. Meanwhile, PropertyX 2020 Connect, PEXA’s premier virtual event series, is coming to WA! We’d love to see you join us for our 28 July industry conference, featuring the latest property market insights, industry news, cyber-security guidance, the PEXA roadmap and a panel session featuring guests from the AICWA, UDIA WA and CBA.
South Australia
We’ve seen strong progress in the SA market over recent months as industry Queensland prepares for its transition to fully digital property transactions on 3 August. There was a 44% increase in digital property settlements month-on-month in We’re pleased to report 80% of all Queensland – with momentum continuing settlements during June were completed electronically in the state. to build. Our on-the-ground, local team is here to assist PEXA members old and new in the months ahead – with technology playing a defining role in this. Find out more about how we’re supporting the Queensland network here.
Ahead of this milestone, PEXA was joined by the Office of the Registrar General, Land Services SA and Revenue SA to answer the market’s questions in a collaborative Q&A. Catch up on all the responses here.
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PEXA Quarterly Update | Q2 – 2020 The latest enhancements and updates for members PEXA is now mobile responsive As working remotely becomes the new norm for many of our members, accessing PEXA from mobile devices has become a lot easier. Since May, members have been able to conveniently access the PEXA Exchange from any mobile device (phone or tablet) to view Workspaces anywhere, anytime as the information adapts to their screen size, enabling the full PEXA experience, with the exception of signing. Read more here.
More than 60% of respondents indicated that they would like a moving checklist/ notification. Thanks to this feedback, from 29 June 2020, buyers are now able to access this easy-to-use resource. In the first seven days, the checklist was opened by 710 buyers with more than 30% using this functionality to tick off items such as ‘organise removalists/truck rental’ and ‘source moving boxes’.
PEXA pricing – unchanged In light of current circumstances, PEXA fees were unchanged as we entered the new financial year (FY21) on 1 July. Instead, the current pricing schedule will remain effective until January 2021. Lodgement fees have also been frozen by some states. Click here for further information.
PEXA Key – ‘Planning your move’ checklist for buyers “I love this new feature PEXA team! What a great resource for clients (and one less thing I have to attend to!)” We’re excited to share that PEXA Key has a new feature for buyers to enjoy. A ‘Planning your move’ checklist has been added to the app to help consumers prepare for their big day. Before its release, we completed an optional survey with 250 participants, asking them “what additional features would you like to see in PEXA Key?”. 4
PEXA Planner driving efficiencies for the banks This tool helps high-volume organisations prioritise and manage Workspaces in bulk and has been so popular with our financial institutions that we have extended its availability to practitioners on a trial basis. The widespread deployment and use of this functionality are expected to deliver efficiencies across the whole network.
New Financial Settlement Summary (FSS) The evolution of the PEXA experience continues to focus on streamlining the user journey. One key area of attention is the Financial Settlement Schedule – with enhancements currently being piloted with members. In listening to feedback from members on the new planner tools, we have included a new filter to show Workspaces based on the Transfer document status.
Keep an eye out for more information to come shortly, with a rollout of the new functionality planned for later in the year. We will be sure to keep you well informed of the changes before implementation, with communications and training plans currently being mapped out.
PEXA Plus – self serve invoices “I don’t have time to call the PEXA support desk about my invoices.” “I want an easier way to manage my PEXA invoices.” Practitioner members will soon be able to access their invoices for Exchange and Marketplace transactions via PEXA Plus. Members simply enter a specific date range and select which invoices they’d like to access (Exchange, Marketplace or both). This August, also based on your feedback, we will be introducing a new feature to help the banks identify when the appropriate time is to action tasks rather than highlighting all outstanding tasks.
Providers hosting their services in the Marketplace on PEXA Plus are also expanding for NSW and Victoria. LawAdvisor’s e-contracts will soon be available for NSW members and Equifax council certificates are also on the way for Victoria.
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FY20 in review and what this means for FY21 By Marielle Yeoh, Chief Financial Services & Marketing Officer, PEXA
The financial year has drawn to a close – and it’s certainly been a testing twelve months for our property industry. Though in a recovery phase, there were promising signs of a successful market rebuild at the end of 2019 – national dwelling values were up 2.3% year on year, 4% in the December quarter and 7% over the previous six months. PEXA transaction volumes were at record highs too, with the market completing 225,000 digitally in December alone – a then-record.
Significant challenges However, this momentum was abruptly halted when the bushfire crisis struck. In the face of this devastating event, it was wonderful to see our country rally together to assist those impacted. Within our sector, we saw some exceptional work being done by so many, including the financial services organisations, who delivered swift financial relief packages and community support. And just as it seemed we were turning a corner and moving forward, crisis hit 6
once again – this time, it was the COVID-19 pandemic. Residential property is Australia’s most valuable asset class, worth $7.1T1 and as our economy prepared to combat the threat of COVID-19, ensuring this market remained fully functional was critical. The Australian Banking Association compiled data between 14 May and 19 June2, in the peak of COVID-19, outlining the incredible volume of work completed to protect consumers and secure the economy. As Australians faced uncertainty with their incomes, their businesses, their loans and their mortgages, there was extreme demand on the banking sector to accommodate relief packages, loan deferrals, new lending and more. It’s not an exaggeration to state that years worth of volume was absorbed into mere weeks – all while business continuity plans were being deployed and tens of thousands of bankers were in the midst of transitioning to remote working. 1 CoreLogic Hedonic Home Value Index, December 2019 Results 2 Core Logic Monthly Chart Pack (July 2020)
In a time where state borders were closing and physical distancing required, industry’s embracing and execution of digital solutions to keep property settlements moving is something it should be proud of. 3
The Federal Government’s $213.6bn stimulus package, including the jobkeeper and job-seeker payments, as well as further sizeable concessions, has stabilised the economy, in tandem with repayment deferrals, but the real challenge will come once these safety nets are lifted. As we saw at the end of FY20, those in secure financial positions will be able to find competitive deals to refinance or reprice existing loans – in the month of June, digital refinances were up by more than 70% year on year. However, for many, the next three to six months will be a difficult period. Job security, reduced capacity and migration will impact new and existing housing demand. Whilst the resilience of the property market has been strong, there is uncertainty ahead.
And PEXA data confirms the growth in this area – digital volume has increased in refinances and transfers nationally by 22% and 51% respectively, when comparing FY19 to FY20.
Though the immediate future post COVID-19 is yet unclear, we know there’ll be challenges – and industry must continue to show the same resilience it has over recent months to move beyond the coming hurdles. 3
Post COVID-19 world Just as it appeared the worst was behind us, we have been reminded of the significance and seriousness of the pandemic – with Victoria forced to reintroduce Stage 3 restrictions as it battles a surge in COVID-19 cases. Though other states are not currently facing similar spikes, this setback will have a flow-on effect nationally. 3 Australian Banking Association – Banking Activity Update, 19 June 2020
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Technology is a means to an end, not an end in itself By Josh Callaghan, Chief Operations Officer, The Real Estate Institute of Queensland
The idea that technology is a means to an end and not an end itself is nothing new. In fact, Admiral Rickover – responsible for development of naval nuclear propulsion – was quoted as saying this back in 1964 and the same is just as true today. Some leaders believe that to be perceived as innovative and forward thinking, they must adopt the latest technology, and we’ve all experienced FOMO after attending a conference where it seems as if everyone is using artificial intelligence, blockchain or some other cutting-edge software. It’s easy to think that we’re getting left behind.
The truth is, the power of technology is not in being the first to jump on board the latest buzzword, but rather, zeroing in on how it can be used to solve customer problems. The truth is, the power of technology is not in being the first to jump on board the latest buzzword, but rather, zeroing in on how it can be used to solve customer problems. Take the example of smart contracts executed on the Ethereum blockchain. Enough technology buzzwords in there for you? The REIQ has partnered with an organisation to execute tenancy agreements using that technology, 8
however the choice to utilise these tools had nothing to do with the technology itself. We did not set out to find a use case for blockchain, and we did not set out to find some cool technology so we could be considered innovative. We set out to make Queensland the best place in the world for transacting real estate. Our existing forms platform, Realworks, executes over 5 million forms per year and not all of those are going to need to be executed using a smart contract. In fact, very few will. However, for things like tenancy agreements, where you have bond payments, rent payments, renewals, utility connections, maintenance requests, smoke alarm compliance and so on, we needed a technology that would not just execute the document digitally and then store it. We needed a technology that would take the administrative burden away from both tenants and property managers, as well as managing each of those elements and keeping all of the data live after execution. A smart contract is a contract that is aware of itself. Although it sounds a little science-fiction, when you think about the construct of a tenancy agreement (and
many other contracts) it revolves around a few key obligations. Smart contracts have little software applications that manage, monitor and execute those obligations. For example, take a tenancy agreement that has an obligation for the property manager to do an inspection every six months. A smart contract application can be developed to start up one month before the inspection is due and automatically books that inspection into the diary of the property manager, populates and sends an email with those details to the tenant and then goes back to sleep. Then, one day prior to the inspection it might wake up again to retrieve the last inspection report and email it to the property manager with a
reminder of the time of the inspection the following day. So many minor tasks can be completed without any manual intervention, which significantly reduces the time it takes to administer a rental property, creates a seamless and transparent user experience for the tenant and provides invaluable insight and cost savings to a real estate business. It’s the best tool for the job, not just a cool tool. The question you need to ask is how can we make doing business with us easier for our customers? Get really specific about what that would look like and then, IF technology is required, find technology that best solves that problem.
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COVID-19 shining the spotlight on cyber-security By David Willett, General Manager, IT Security, PEXA
The outbreak of COVID-19 has changed the way we interact and work with one another – both now and in the foreseeable future. While social distancing requirements and lockdowns nationwide have forced us to adapt, it’s been wonderful to see the collaboration and embracing of digital solutions within our industry, ensuring citizens can settle property in spite of the circumstances. But as Australians continue to navigate this online phase, there’s a key area in which we must remain vigilant – our cyber-security.
CYBER-CRIME STATISTICS • A cyber-attack occurs every 39 seconds1. (Varonis) • Cyber security incidents cost Australian businesses an estimated $29 billion every year2. (Australian Cyber Security Centre)
• In 2019, phishing was the primary method used by hackers to scam Australian businesses - almost doubling the losses experienced in 20183. (ACCC) 1 Varonis: 107 Must-Know Data Breach Statistics for 2020 2 Australian Cyber Security Centre (ACSC): ACSC Small Business Survey Report: How Australian Small Businesses Understand Cyber Security 3 Australian Competition and Consumer Commission (ACCC): Scamwatch 2019
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Currently, individuals are spending less time in their offices and more time working remotely, with heavier reliance on “access anywhere” cloud-based services. These tools provide teams and companies with great flexibility, enabling the transmission of information and documents on any internet-enabled device.
But while businesses safeguard their data with rigorous security measures, the work-from-home boom means employees are more likely than ever to be accessing potentially sensitive information on devices that do not have the organisation’s protective measures in place.
What should organisations consider to protect their employees and information? • Have a strategy for which cloud services your business needs and ensure you have paid for enterpriselevel accounts (if possible) with your chosen services – ensuring you get the cloud provider’s full suite of protection.
ensure they use only these to manage your business or clients’ information. • Enable MFA for any solution you have that can be accessed anywhere on the internet.
• Operate your company devices with a full suite of security protection • Make sure your staff know what your deployed, including anti-virus, up to preferred services are and take steps to date operating systems and browsers. Staying alert is even more critical in the COVID-19 climate, which is proving an attractive proposition for would-be criminals.
in COVID-19 themed malicious cyber activity.
This is a period in which people are constantly seeking information – and As recently as 19 June, the Australian this specific, heightened demand for Government informed the public it was COVID-19 updates is being preyed upon responding to a sophisticated, state-based by criminals. The benefits of being able cyber-attack. to work remotely and stay connected digitally are significant – but this flexibility This targeted organisations across a must not compromise security. range of sectors, including all levels of Government, industry, political With our workforce poised to become organisations, education, health, essential more digitally dependent in the months service providers and operators of other and years ahead, the COVID-19 cybercritical infrastructure. In addition, the crime spike should serve as a timely Australian Cyber Security Centre (ACSC) reminder of the need to ensure dueconfirmed it has observed an increase diligence.
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Four digital marketing tips and tricks for practitioners By Matt Meakins
Most of your business is likely to be sourced from your local area. An up-to-date website is a good start, but it’s just one of a slew of online tools that can help boost your profile – and you don’t have to be a computer whiz to get started.
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Search engine optimisation (SEO)
Pay-per-click advertising (PPC)
Many people use search engines like Google to find services. Ideally, you want your business to appear on the first search engine results page (SERP) because that’s where most people click. Regularly updating your website with interesting, relevant content is the best way to achieve this. Think about including content about why people need conveyancing services and helpful articles about buying and selling a property.
Pay-per-click refers to the advertisements you see when you’re searching the web. The ads are priced using a bid-based system – advertisers bid on keywords and the ‘winners’ appear in the ad space on the search engine results page.
Other useful SEO methods include keeping a blog, making your website easy to navigate, and sprinkling it with appropriate keywords. For the latter, including specific local search terms – for example, “conveyancer brunswick” rather than “conveyancer melbourne” – will help to attract local customers. Facebook advertising Facebook’s 1.7 billion daily users include plenty of home buyers, and Facebook advertising is a great way to connect with them. Ads can be targeted based on demographic information they’ve shared, as well as their history of likes, shares and other data. Facebook’s Audience Insights tool aggregates and displays this data so you can fine-tune your message for users who are most likely to respond. This means you can target your advertising to people who are talking about buying or selling a property, or who are looking at Facebook pages of websites that list properties for sale.
Each time your ad is clicked, you pay the search engine a small fee, hence the names pay-per-click (PPC) or cost-per-click (CPC). Generic search terms such as ‘conveyancing quotation’ tend to be quite expensive, so it’s usually wise to bid on more specific and location-based searches. Try search terms based on the keywords you used on your website, such as “conveyancing brunswick” or “property conveyancing costs”. It’s important to note that PPC ads don’t simply go to the highest bidder; the search engine will also consider each business’s Quality Score before selecting the winners and the position of their ads. The Quality Score is based on the performance and relevance of the pages people see when they click through to your ads. You can reduce your online advertising costs by improving your Quality Score (Bid x Quality Score = Ad Rank). To help with budgeting, some websites offer PPC ROI estimators. Google My Business Listing your business on Google My Business is a powerful way to promote your brickand-mortar presence. The free platform promotes contact details, street address, opening hours, and photos of your choosing, and helps you control how you appear on Google Search and Google Maps. The customer review feature might be daunting for some, but you can respond instantly via the Google My Business mobile app.
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Do you have feedback, a question or a story pitch? Get in touch with us at industry@pexa.com.au
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