After so many years of home owners yearning for growth in the real estate industry in Australia in New Zealand, it seems 2014 really delivered on the promise of brighter days ahead. Real estate in Australia is nearing its second year of effective recovery, while New Zealand is about a year ahead, recently passing it’s third anniversary of sustained property activity.
In a look back at the Ray White Group’s performance for December, Brian White revealed some amazing outcomes. On 13 January Mr White noted that the group had a month that surpassed all previous December trading figures to date – a $3.37billion result!
The huge effort by all of the Ray White Group was only just shy of the all-time record of $3.6billion set in November. However, in a month that is dominated by holidays and time off, it is an achievement of note.
Ray White New Zealand managed to record its best month to date in December 2014, with a figure of $704million for the month. The company is going from strength-to-strength, but this is also largely due to the market conditions that we are all enjoying. By actively anticipating market movements, the Ray White Group has managed to stay at the forefront of real estate activity in Australia, New Zealand and the rest of Asia-Pacific.
Last year was a monumental one for the entire mortgage broking industry. Mr White reported that brokers were responsible for 51.5 per cent of all residential home loans in the September quarter. This is another indicator of the public increasingly seeing the benefit of engaging the services of a broker when arranging a home loan.
In fact, in December, Loan Market achieved its highest settled loans in every state bar one, as well as 15 per cent growth on average results for the financial year.
The success of the real estate market has not been confined to residential dealings, with the commercial side of the business transacting 65 per cent more deals than in the previous year. Mr White wrote that investment sales, development site activity and leasing all contributed to this.
This is a good indication of increased levels of business confidence throughout the country, and confirms the findings of the Property Council’s Performance of Construction Index, which showed that confidence increased across the country by four points on the index from the September quarter.
Industrial and commercial activity was at very high levels throughout 2014 for the New Zealand market. Ray White Commercial Auckland recorded over $500million in settled sales for the year – more than double the figure for 2013. Bruce Whillans, managing director of Ray White Commercial in New Zealand noted that a large amount of this success was due to increased interest from foreign buyers.
Over 50 per cent of the division’s total was attributed to resident Chinese or Chinese companies, while several high-profile sales contributed to the overall total.
Ray White Commercial Auckland succeeded in a number of areas throughout 2014 to make the year a success overall. These included CBD office towers, industrial centres, high profile business addresses and underwrites as well.
The diverse nature of commercial real estate in both the Australian and New Zealand market makes for a business that always has its ears to the ground. Mr Whillans concluded his Auckland Market Update for the end of 2014 with optimism for the year ahead, based on the level of business confidence, steady interest rates and increased overseas investment.
The same favourable conditions are the hallmark of the Australian commercial sector at the moment, potentially making 2015 another year for the record books.