Network and industry

The evolving real estate landscape

As we navigate the ever-evolving real estate landscape, it's essential our agents are informed about the factors influencing market trends as well as the interests and concerns of our customers.

While the impact of Australia’s most recent inflation data on the Reserve Bank’s next official cash rate (OCR) decision won’t be known until August, a majority of analysts anticipate rates will rise – perhaps even twice before the end of 2024. Advertised listings are currently running 18% below the five-year average, a situation which could worsen if potential vendors perceive weaker buyer activity in the run up to Christmas. That’s why it’s essential we work with you through your Business Growth Manager to assure your agency is best placed to win more business.

Meanwhile, homeowners have seen an 8% increase in property values over the past year, translating to an average gain of $59,000. Despite inflationary pressures, property prices have remained resilient due to high demand, bolstered by substantial immigration figures. Last year alone, 547,300 migrants arrived in Australia, creating a demand for housing that far exceeds supply. Based on official statistics of 2.5 people per household, 218,920 houses would have had to be built to accommodate this influx. This equates to 600 homes built every day or one every 2.4 minutes.

Government policies play a critical role in either facilitating or constraining housing supply. Changes in tenancy legislation have led landlords in Victoria, Queensland and Western Australia to exit the market, reducing rental stock and pushing up rents.

In Victoria, rental bonds have fallen by 15,600 in the past 12 months
In Queensland, rental bonds have fallen by 14,000 in the past two years
In Western Australia, rental bonds have fallen by 20,000 since January 2021

The Real Estate Institute of Victoria (REIV) has called on the State Government to phase in new minimum rental standards and offer landlords financial incentives to avoid destabilising an already strained rental market.

Historically low unemployment rates continue to underpin demand in the property market. Job security boosts confidence, encouraging buyers to make purchasing decisions. As long as employment rates remain favourable, demand for housing is likely to stay robust, even amidst rising interest rates.

Although the factors that collectively shape market dynamics are largely outside our control, within our control is the presentation, competitiveness, and customer appeal of First National Real Estate. Also within control is the quality of products, services, learning and development we provide in support of each First National office and its people. That’s why we’ll shortly be engaging Klein Research to independently gauge levels of member satisfaction across the network, establishing which services you most value, those that you don’t, and where we can most improve. Brand health research will also soon be commissioned, giving us a base line from which to measure much-needed improvements in consistency.

As we look ahead, understanding these elements will be crucial for making informed decisions about the network’s strategies to grow members’ market share. I encourage all principals to participate fulsomely.

Stay tuned to our newsletter for ongoing updates and insights.

Jack Freestone headed for Elite Retreat

Winner of the 2024 David Nitschke Scholarship Award, Jack Freestone of FN Murray Bridge (SA) received news last week that he’s headed to Elite Retreat on Hayman Island this August, courtesy of First National.

Jack has recently celebrated the milestone of his 10th anniversary at FN Murray Bridge, where the entire team is grateful for his loyalty, passion, and countless contributions.

Rural & Regional Muster, Mildura

The Rural and Regional Muster eBook and agenda is now out, and there's still time to register. Don't miss out on one of our most entertaining and informative conferences of the year! Click the image to explore the agenda and register.

Don’t miss the deadline

Anti money laundering reforms on horizon

There are new Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) reforms on the horizon, with a focus on compliance by real estate agencies.

More than 65% of proceeds from crime confiscated by the AFP is real property, mainly commercial and residential. Real property is an attractive way for criminals to store wealth, and to conceal and profit from their crimes.

Australia is one of 6 countries (out of more than 200) that has not fully implemented AML/CTF and faces international pressure and serious economic consequences if it continues to fail to do so.

Under current proposals, real estate agencies, developers, auctioneers and buyer’s agents will be required to:

Enrol with AUSTRAC
Develop an AML program tailored to their business
Conduct customer due diligence
Report suspicious transactions or activity
Keep records

The reforms will apply to buying and selling, but not property management. Agents will be required to apply their AML/CTF obligations to both vendor and purchaser.

Franchisors will also be required to conduct risk assessments, identify risks at individual office level, and maintain a group AML/CTF programme that applies to all reporting entities within the group.

Second stage consultation on reforming Australia’s AML/CTF regime has now closed. If the proposed reforms become law, AUSTRAC will work closely with the real estate sector to help it understand and comply with its obligations, and it is expected the sector will be given time to prepare and make arrangements before being regulated.

Further Information

Let’s celebrate our property managers

National Property Managers’ Day is coming up on the 26th of July and we need your help to put a spotlight on the best of the best.

Drop us an email with photos of your beloved team by 15 July and we’ll include them in the video we’re putting together.

Email emarketing@firstnational.com.au

Retirement of commercial legend, Frank Tierney

It is with mixed emotions that we announce the retirement of Frank Tierney, former National Chairperson (2002-2005) and current Commercial Consultant. Frank has been an integral part of our network and FN Commercial for many years, contributing significantly to the growth and success of our commercial chapter.

Frank's dedication, expertise, and unwavering commitment have been pivotal in shaping our commercial strategies and supporting our members. His efforts have not only driven our commercial initiatives forward but have also built a strong foundation for ongoing growth.

While Frank is stepping down from his role as a contracted consultant, we are pleased to inform you that he will continue to be available to our commercial members on a project basis. This transition ensures that we can still benefit from his invaluable knowledge and experience.

For any requests for Frank's support, please contact Anne Donchos, our National Commercial Growth Manager.

We extend our sincere thanks to Frank for his outstanding contributions to First National Real Estate and wish him the very best in his retirement.

South Australian reforms now in force

South Australia’s Property Managers are reminded that as of July 1st, changes to the Residential Tenancy Act are in force. The major changes are:

A ban on no-grounds evictions, with landlords requiring a prescribed reason to terminate or not renew a tenancy.
An increase in the notice period to end a fixed tenancy from 28 days to 60 days.
Permission for tenants to be able to have pets in rental homes under a set of guidelines.
Minimum housing standards clearly laid out for each room in a property.
More flexibility for victims of domestic violence.

Download REISA Presentation

Get your FN updates on Facebook

We know you don’t always have time to read Our Fabric, so make sure you and your team are members of our private Facebook group – The Pitch.

This is where we share news items and updates on a daily basis in bite-sized posts.

Just scan the QR code to join.

Winning with digital marketing

Stephen Toms’ Digital Workshop in Brisbane on 25 June was a hit!

‘Stephen was amazing! I don't think I've attended a training session that insightful in a long time - I loved the material we got afterwards as well, so good to reference when I'm stuck on something.’

Talitha Jose

FN Property Solutions (Palm Beach, QLD)

‘I've come away with so many new insights and practical skills that I'm excited to implement with my team. If you're looking to up your game in digital marketing, I highly recommend attending one of Steve's sessions. Thanks, Steve, for such an inspiring and informative training!’

Alison Harris

FN Property Solutions (Palm Beach, QLD)

Upcoming education opportunities

South Australians don’t miss your opportunity to catch our final sales training day with Jonathan Clover on systematic selling – September 18.

Jonathan has now delivered training in Perth, Brisbane and Melbourne and the network extends its thanks to Jonathan for sharing his expertise, up-skilling both sales agents and principals throughout the network.