A 60 per cent on-year surge in sales in Western Australia, along with increased activity in Queensland and New Zealand, has edged Ray White Group closer to the monthly $3 billion-plus sales peaks it enjoyed five years earlier, its chairman has said.
The company posted $2.8 billion in sales in November, a result that chairman Brian White said in his monthly White Paper had given them “encouragement”.
New Zealand remained a standout for the group, he said.
“It’s been 10 months since Auckland went into take-off,” Mr White said. “Growth in values of 30 per cent or more in that time are remarkable. Can it keep going? Our analysis of property cycles suggests buoyant conditions can’t run too far ahead of fundamental economics.
“There comes a time when price growth has to slow down from sheer buyer exhaustion. This might be happening in Auckland at the moment. Recently bidders at auctions have decreased from five to one or two. More proof, to our collected experience, that property is a reflection of community attitudes and community capacity. Booms never last very long.
Mr White, who recently encouraged agents to have confidence in what they do, also pointed to growth in WA and Queensland, which he said “had first class results”.
“In Western Australia the Ray White November result was a staggering 60 per cent up on last year. The market was clearly a catalyst, however additional improvement was also driven by having nine significant new businesses join us over the past two years.”
Mr White expected the recent cut in the official cash rate to drive more growth in Australia.
“Investors are increasingly being attracted to the yields now available in commercial property, especially as deposit and borrowing rates fall," he said.
“Loan Market is benefiting from being the largest non-aligned broker, highlighting developing interest by borrowers to have independent advice,” he added. “The nine per cent growth in home loan approvals in November to $750million reflects the credibility of this strategy.”