Ray White Portfolio Magazine - January 2023

A new year is here, and I welcome 2023 with plenty of optimism about what the commercial property market has in store.

After rounding out 2022 with approximately $6 billion in sales, it was exciting to see Ray White Commercial’s sales value hold steady on the record year that was 2021, where we double our sales value from 2020. In 2023, I hope to see Ray White Commercial reach further records for sales.

Our 2023 auction schedule kicks off this month with Ray White Surfers Paradise group’s The Event, where a range of commercial and residential properties will go under the hammer. In 2022, Ray White Commercial scheduled 537 auctions, up 17 per cent year-on-year,

with an all sold clearance rate of approximately 67 per cent. We recorded an average of 4.5 registered bidders, and 3.2 active bidders, which shows the ongoing demand for commercial real estate.

I wish all our clients a very happy new year on behalf of the Ray White Commercial network, and we look forward to working with you throughout 2023.

ANDREW FREEMAN HEAD OF AGENCY OPERATIONS

VANESSA RADER

HOLIDAYERS RETURNING TO THE AUSTRALIAN COASTAL MARKETS

IT’S BEEN A TOUGH TIME FOR MANY TOURISM OPERATORS OVER THE LAST FEW YEARS, AS WE ENDURED A PROLONGED PERIOD OF LOCKDOWN, BORDER CLOSURES AND RESTRICTIONS, FOR BOTH DOMESTIC AND INTERNATIONAL TRAVELLERS, CAUSING OCCUPANCY LEVELS TO PLUMMET.

Once travel restrictions started to ease, we saw an uptick in the drive holiday market benefitting many regional locations both inland and along the coast. However, for many, travel remained within the state, still putting pressure on a recovery for the sector until late 2021 and into this year.

As we move into the post COVID-19 economy, with borders opened for both domestic and international visitors, we have seen a quick sprint to travel again. Looking at domestic aviation statistics, we can see in August 2022 the number of domestic passenger movements have increased 68.2 per cent compared to the previous year with results now inching closer to pre COVID-19 levels. Looking internationally, we have also been in a hurry to get back on planes, with huge increases recorded this year, albeit still well behind 2019 levels. For international travel, there is still some uncertainty regarding rules and regulations with travelling, coupled with sentiment shifts associated with safety and the economy, seeing some tourists opting for a local holiday. However, domestic weather events have been a dampening factor this year.

Encouragingly, some of our local coastal markets have re-emerged as holiday hotspots with a rapid resurgence in activity in markets such as Cairns and the Gold Coast. After never before seen lows in occupancy, these locations have seen good levels of recovery, most notably during the school holiday periods.

Most recently during the September/October holiday period, we saw Gold Coast occupancy at approximately 76 per cent which is inline with monthly results pre COVID-19.

Annual rates continue to lag behind these, but are anticipated to recover as we continue to record robust results, particularly with the upcoming Christmas holiday season. This has also resulted in robust gains for average daily room rates. Rates were highest in January peaking at $336.75 per night, and continued to be strong during the Easter holiday period at $305.36 per night, with the last school holidays averaging $286.47 per night over the two month period. With occupancy rates trending upward, it is expected that this Christmas holiday season is likely to bypass rates achieved historically.

For Cairns, weather conditions have cemented July as its peak season. Occupancy reached 82.8 per cent this year, inching closer to the 90+ per cent rates prior to COVID-19. This year we saw average daily room rates eclipsing all prior years growing to $262.69 in July. Rates have maintained strong rates during September ($248.59/night), another historic high with occupancy approaching 70 per cent, also typically unseen during these warmer months. As local travellers seek out domestic holiday options we anticipate continued high demand during the hot, summer holiday period which historically is more quiet, echoing the $200+ per night room rate achieved in December 2021; again a record rate.

WHAT IS YOUR NEW YEAR’S RESOLUTION?

ZORICK TOLSTAN

RAY WHITE COMMERCIAL DB

My new year’s resolution is to continue to grow the business with a strong focus on recruitment and increasing market share. We are now a team of three with plans to add another one or two by the end of the financial year.

EMILY PENDLETON RAY WHITE COMMERCIAL NORTHERN CORRIDOR GROUP

My new year’s resolution is to have a refined onboarding and career development plan for my associates. This would allow me to build a long-term team and to have space to work on larger value deals.

SCOTT WELLS RAY WHITE COMMERCIAL GOLD COAST

My New Year’s resolution is to continue to grow my team and business within the commercial network, and have a greater presence within the auction arena. Achieving a more balanced work - life is also a priority for 2023!

LUKE PAVLOS RAY WHITE COMMERCIAL WESTERN AUSTRALIA

My new year’s resolution is to continue to see the success of my new transition to Ray White Commercial WA grow by adding value to the business through high quality sale and leasing transactions. I have thoroughly enjoyed my time here and can’t wait to see what 2023 will bring for our office leasing department and capital market transactions. My personal resolution is to see the Perth Glory win a game at the Stirling Soccer club that I run, where we are privileged to be hosting their home games this season.