In E21 of the Inspire & Inform Show, Colin shares his October 2020 property market insights and the rise in regional areas post COVID
Please see below for the full transcript of this video
Hello, and welcome to Episode 21 of inspire and inform. Today I’m going to be talking a little bit about the October Rei insights for property demand, just comparing it in the last four weeks, it is really quite important because I hear a lot of talk about property prices. You know whether it’s a good time to buy, I’m getting a lot of these questions. So I wanted to just share today, just some real data and statistics about what’s really happening in the marketplace, and really how that’s going to affect you and your property search, whether you’re an investor or homebuyer. And I also want to have a little bit of a chat about the demand in regional areas. I’ve just been reading a report today, really from RBA, about the movement of, you know, buyers really, from the bigger cities into more regional areas in which it regional areas are starting to show signs of improvement in terms of properties. So that’s going to be something I’ll be sharing today. Hey, for those that don’t know, my name is Colin Lee, I’m the founder and CEO of inspire realty helping our clients build better futures together. And the purpose of this forum or this event is really is just to help investors and yourself to make informed decisions about your property purchase. So I’m very excited to be doing this every week on a Wednesday at six o’clock. I’ve not missed this since I’ve started the business. And I hope to continue this unless I’m away for holidays, which is happening soon in December, I cannot wait to head up to Queensland, if the borders open. So I’m just super excited about that. Just as a quick story, I’ve invested in properties for over 10 years. And since then, I’ve made a lot of mistakes, I’ve learned a lot of good things and also made some pretty good gains out of this and have been able to build a multimillion dollar property portfolio all across Australia. And my passion and desire is to help you get started in your property journey. And lately, I’ve been really assist assisting a lot of first home buyers and new investors into the marketplace. I love teaching. I love educating I love sharing my experience and stories. So that’s what I’m planning to do. And my vision is to be the most transparent and trusted property investment services company. What I thought I’ll show you today is just to statistically show you that the demand for property is still there in terms of what’s what’s really happening in the marketplace. what’s what’s really, you know, rising in terms of the different cities, how much is it rising by two just to help you to have a sense of confidence that the market is picking up. Obviously, there’s still a lot of unknowns. But I can see that Australia is really you know, handling COVID incredibly well compared to many parts of the world. And I economy is, you know, as being propped up at the moment by job keeper and hopefully job maker very soon. But I know that, you know, Australia is a very resilient country and our government I’m sure is doing whatever it’s whatever is necessary to to stimulate the economy. But I’m certainly starting to sense a confidence back in the marketplace. So I hope to inspire you to seriously consider looking at opportunities if you’re a first home buyer or you’re an investor. So I’m going to just share my screen on this one here. So you can see this, this is quite an interactive sort of a graph. So if you can see this, so this literally just came out today from RBA. And this is just the insights into the weekly demand from buyers. So if you look at this, this is really weak ending of the 18th of October. So the results were only out today. But this is really as recent as it gets in terms of the demand index. So this looks at from the first of January, moving up until October. So the three lines really, that you look at one is the red line, and that’s just units and houses and then the total which is the black line. And the reason why I’m showing this really as well is because I always learned you know that as
you build your property portfolio, you’ve got to make sure that you build a diversified property portfolio. So Gone are the days where the demand is you know is skewing towards units, I can definitely see a big demand for house now, particularly in more regional areas, because people are starting to work from home. And so I think the home is going to be starting to come back into into popularity people are you know, they’re more used to working from home so So I just want to compare units and homes, which is really roughly the same, I don’t think there is a big difference except for maybe during the February month, you can see the demand for units really rose, you know, comparative to houses. So that’s a little bit of an outlier. But otherwise, it’s all pretty much the same demand. So looking at what happened, the peak of COVID, that’s when the national restriction started to ease, you can see that, from the first of April onwards, the demand started to pick up. And then, you know, there was, you know, sort of like a second wave that happened. And that obviously, you know, lowered the confidence in terms of the demand, especially in Victoria with the lockdown starting as well. This is actually it tells us on the ninth of August when it started. And you can see that in nationally, the demand for properties started to dip. But certainly in the last three to four weeks, you can see that it’s steadily picking up in terms of the demand. And I can certainly see this increasing until towards the end of November, just before the Christmas holidays. But who knows, you know, I think because we can’t travel now overseas, I think the demand for properties may actually increase up until December. This is a true story. I can see that. Because we have I also operate as a traditional agency helping my clients to consolidate their property portfolio only if they really feel like they cannot hang on to their current property portfolio, or for whatever personal reasons they have to sell out. Because I believe property investment is a long term strategy. I have a property that we listed since August, and August ish. So you can imagine it’s been two months now. But at the peak of August, we can see that there weren’t that many inquiries. And in towards October in the last three weeks, we had a lot more inquiries. And finally, we’ve received a couple of offers on the property that my client has decided to put in the market. It’s a property near Gold Coast on an acre, and it’s really good investment. It was originally their home, but they’ve had to sell it and and move on to a different opportunity. So I physically see the demand picking up in the last three weeks. We had an open inspection a couple of weeks ago, and we suddenly had 30 people that’s, you know, over over more than what we’ve ever had before. So we can start to see that people are starting to come out and starting to attend open inspection so I can start to see that demand increasing. Anyway, I’ll stop this now and go back to my presentation. So just really quickly, I thought it’d be great to just share with you a little bit about what’s happening with the demand for homes. You know, I’ve been having a lot of conversations with my clients, particularly those that are living in high densely populated cities. You know, the City of Sydney, for example. I’ve been to the city a number of times this week, been talking to a few people. And you can tell that the City of Sydney is quite quiet at the moment. You know, admittedly, I think people are working from home. I look after a client as well who owns a cafe in the CBD. And they are starting to see a rise of people coming back. But certainly nowhere where it was originally, you know, before COVID hit. And where are these people going? These people are, you know, working from home, I certainly am working from home myself on, you know, three days a week, the very least. And I only go in when I really have appointments and meeting with, you know, partners and business associates or clients. And so there’s really no need for me to go into the city. I do all my consultations. I run my team meetings all online now. And what’s happening is that you’re starting to see that regional areas, suburb suburbs, starting to pick up in business. I was in rural a few weeks ago, meeting with a developer friend of mine is a huge developer. And he lives in rural on acreage. And we had a conversation we went out for coffee and there was this coffee shop that we went to and you can tell it’s very very popular. And and he was telling me that you know it’s
Well you wouldn’t believe it, believe it or not my power just completely went out. I’m actually in my home studio and I think I must have tripped something or something must have happened. So my apologies for that. It was just a little bit of a, a quick interruption. Anyway, my message is that as a property investor or as a property buyer, it’s worth considering looking at regional areas, there’s certainly a lot of reports now showing that, you know, buyers are keen to look at different areas, as opposed to purely looking at the bigger bigger cities. So just wanted to say that, you know, 2020 has been a time of change, I can see that, particularly a lot of people living in Sydney and Victoria, wanting to consider, you know, to see change. I certainly know of a client at the moment that I’ve helped them look at a finance, pre approval. They are looking to move from Sydney. I mean, they live in Sydney, they’ve been living in Sydney for many, many years, and over the same amount of money that they could borrow. They’re using that to buy a family home that’s out near Gold Coast or Brisbane. So that’s certainly a bit of a change. You can see that in Sydney in particular, Newcastle has been a hugely popular area. And I know suddenly of at least a couple of clients who’ve already asked me if I can find something in Newcastle. So I encourage you to look at the big movers report. It was actually conducted by the regional Australia Institute and they map basically the movement of people in Australia before between 2011 and 2016. And they show that Sydney, Melbourne and Adelaide have steadily been losing more people than they’ve gained from the regional areas. So, you know, just wanted to share that I’m a Sydney side of myself, I love Sydney. But I’ve certainly contemplated and considered moving to, to Brisbane or Gold Coast is a bit of a four bit of sea change. I’ve got a young family and so it’d be nice to have a much, much bigger home for the money that I can get for Sydney. Anyway, Sydney has lost a lot of people year on year. This year, I think they’ve lost about 64,756 people, you know, moving out to regional areas, followed by nearly 21,000 plus from Melbourne, and 1000 plus from Adelaide. On the contrary, or though, Brisbane has been getting getting residents, they’ve been getting about 15,000 residents just this year alone. So so there’s a lot of movements of the regional areas where people have moved to say total about 65,000 new residents over the five year period. areas like Gold Coast, have picked up about 25,000 people Newcastle have picked up about 13,000 people and Sunshine Coast have picked up about 13,000 people. So those are the areas that are top three, really attracting a lot of movers in that period of time. So if I were you, I would, you know, have have a good Think about your portfolio. It’s not always the big cities, it’s not always or just the apartments that are going to be the big thing these days. I think it’s worth considering diversifying your property portfolio and looking at options that will benefit you. Well, if you’re interested in having a conversation with myself or my team, if you’d like to hear more about what we can do to assist you to build your property portfolio, to look at a strategy for you for long term, we know that we cannot always depend on our superannuation and our pension funds. Please feel free to reach out to us on www dot inspire realty.com shoot us a message and we will definitely get back to you to have a discussion about you know your current situation and how we can best assist you. Thank you so much for your time tonight and have a great evening. Bye for now.