One of the industry’s major groups has smashed its annual sales record after one office alone made more than $1 billion of sales.
McGrath Estate Agents, which has 68 offices in NSW, Queensland and the ACT, posted record residential volumes of $12.3 billion in 2014-15.
That was 21.8 per cent higher than the $10.1 billion result recorded in 2013-14 and 75.7 per cent higher than the $7.0 billion result from 2012-13.
The group made 11,760 sales in the 2015 financial year, which was 11.2 per cent more than the 2014 financial year and 49.4 per cent more than the 2013 financial year.
McGrath Estate Agents’ top performer was Edgecliff – the Sydney office made $1.61 billion from 1,110 sales for an average result of $1.45 million.
The number one office in terms of growth was Buderim on the Sunshine Coast, which increased its sales by 129.4 per cent to $113.1 million.
Lindfield in Sydney jumped 124.9 per cent to $450.4 million, Avalon in Sydney jumped 94.9 per cent to $56.9 million and Thirroul in Wollongong jumped 75.0 per cent to $111.6 million.
The fastest-growing office in the ACT was Dickson, whose sales rose 52.9 per cent to $117.9 million.
Chief executive John McGrath said the group’s strong growth reflected the confidence that people have in property.
“Sydney in particular has proven to be one of the most resilient property markets in the world, with long-term fundamentals that underpin the market,” Mr McGrath said.
“The boom will end at some point, but that doesn’t mean price growth will end – rather, it will continue in a more moderate fashion.”
Mr McGrath said residential property performed extremely well following the GFC because people regarded bricks and mortar as a secure investment. Something similar is likely to play out given the turmoil in Greece and the volatility this is causing the sharemarket, he added.
Investors and upgraders have dominated on the eastern seaboard, but the top of the market is finally gaining momentum, according to Mr McGrath.
“As our dollar continues on a downward trend, I anticipate increased interest from expat and offshore buyers as they benefit from a 25 per cent currency reduction on what they were paying 18 months ago,” he said.
McGrath Estate Agents opened 10 offices in 2014-15 – eight in NSW and two in Queensland. The group is now in its 27th year.