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An emphasis on real estate fundamentals — that’s what Ben Pike, director at Pulse Property Group in south-eastern Sydney, described as the driver behind his team’s success to start 2023.
With the Reserve Bank of Australia (RBA) enacting three of a possible four cash rate increases so far this year on the road to a 3.85 per cent cash rate, Mr Pike, speaking exclusively to REB, explained this cycle has increased buyer uncertainty to begin the new year.
“[There is] fear and uncertainty around what’s happening in the economy and what’s ahead. Which is very understandable,” he said. In the Sutherland Shire alone, such concerns meant the area saw an approximate 30 per cent decrease in listings volumes to begin the year.
Despite this, he reported his outfit has managed to achieve strong results. Pulse Property Group’s sales team met over 3,600 prospective purchasers over the period, many from Sydney’s inner-west of Eastern suburbs, leading to 68 properties sold.
This strong performance to open the new year was bolstered by the agency’s in-house auctioneer achieving a Q1 clearance rate of 90 per cent — at a time when the wider Sutherland Shire’s success rate sits at just 61 per cent.
So, how has Pulse Property Group surged against the turbulent economic waves crashing against Australia’s shores? According to Mr Pike, a large part of their success has come from stripping back their approach.
“Our team has stayed focused on the fundamentals of good real estate — do the small things well, focus on the customer, and keep our clients and prospective clients up to date with what is happening across our market.”
“Our team understands the importance of the role they are playing for the vendor and their buyer. So, while economically there have been 11 interest rate rises and mortgage stress continues to increase, surprisingly we have seen buyer inquiries, open home numbers, offers, and competition among buyers increase,” he explained.
Mr Pike added his agents are continually indoctrinated with the significance of their role, especially in the lives of families and investors navigating complex transitions surrounding the real estate transaction process.
Across all of this, he insisted that the “fundamentals of supply and demand don’t change, but sentiment changes, and that’s where our team takes the time to understand and partner with our vendors and buyers to achieve solid results in all market conditions.”
Despite recent auction results indicating the typical winter market slowdown has yet to set in, Mr Pike is doubling down on his agency’s strategy moving into the colder months.
“Our team will continue to focus on the fundamentals and discipline of good real estate,” he said.
Casting a wider view, he believes future interest rate activity, consumer sentiment and confidence, immigration levels, and supply will act as the greatest drivers of market activity down the track, both locally and nationally.
And while he is optimistic the worst market period occurred in late 2022, Mr Pike noted NSW’s supply troubles “remain the same, regardless of swinging market sentiment and consumer confidence”.
Tempering that belief, he also expects market demand to remain steady into the second half of the year, adding an increase in prospective buyers present at inspections indicates current growing consumer confidence.
“Good properties, in desirable locations will continue to hold steady in spite of any temporary market and sentiment fluctuations,” he concluded.
That is, unless interest rates continue their upward climb. The agent conceded it would “level out any overly optimistic sentiment and any great rush to the market.”
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