Ray White sales hold steady
The May sales figures of Australasian real-estate group Ray White remained steady at $2.1 billion, mirroring the $2.1 billion total in April.
But Ray White’s monthly figures reflect a revival in upmarket sales activity. Its top offices during May were Surfers Paradise in Queensland, Double Bay and Neutral Bay in NSW, and from Victoria, Glen Waverley and Epping.
Group chairman Brian White says given prevailing negative headlines, some buyers and sellers might assume that the sales market was chaotic.
“Yes, prices have eased in many locations. Yes, there are fewer sales, but nowhere near the horrific changes some are proclaiming,” White says.
In April White noted the continued impact of recent natural disasters, Brisbane’s floods, Christchurch’s earthquake and the north Queensland cyclones.
White noted the natural disasters had triggered the sales figures to drop in April to $2.1 billion, some 15% less than April in 2010.
Sales in all three localities fell by more than 30% on the previous year.
“The consistency of the drop was remarkable,” White says.
“Take away the impact of these particular markets and the overall drop, year on year, comes down to just 10% – with approximately half of the drop to each of reduced values and reduced transaction activity.”
But it was the first April that matched its preceding March total.
The most positive signs of improvement across the group in April were from New Zealand.
“How quickly market sentiment can change when there is an interest rate drop, with a 0.25% interest rate drop at the beginning of the month quickly impacting particularly in Auckland,” White says.
“Faith in the future strength of both countries remains rock solid, leading to continued buyer enquiry. Buyers want good value, and if they can get it, they will commit.
“Market commentators often are unable to sense this level of buyer activity, but we’re seeing it every weekend at our open homes,” he says.
Queensland prices now reflect the best value in the nation, White says.
