Last Thursday the leaders of Melbourne’s property industry braved torrential rains to come together at the PwC offices in Southbank for an Industry Insight Night. The event was one of our biggest, with over 150 guests in attendance from PwC, Knight Frank, Castran Gilbert, Burbank, MAB, Jalin, Jellis Craig, Salta, Mirvac, Cedar Woods and many more. Everyone enjoyed drinks and canapés on arrival, and there were a lot of business cards changing hands and future meetings being booked. A group of Investorist members and clients in Perth also joined the event remotely from the Subiaco Hotel with our Perth Manager Nikki.
The evening was centred around an open and honest conversation about the current state of the market in Victoria (and more broadly Australia) led by a panel of industry experts. The panellists were mediated by Investorist Founder Jon Ellis and included Sam Tarascio, MD at Salta Properties, Matt Reid, Partner at PwC Real Estate Advisory, Terry Portelli, MD at Red23, Robert Papaleo, National ED of Research at Charter Keck Cramer, and Sally Qiu, Manager at Ivy Real Estate.
Jon explained the discussion as being “like an ABC Q&A, but a little bit more liberal party focused than labor party focused”, and let the audience know they could ask questions throughout via the online chat on their smartphones. The aim of the evening was to discuss the many issues affecting the off-the-plan industry at the moment, including lending restrictions from banks, negative press about oversupply and recent government policy changes.
Robert kicked things off, saying that while the market is undoubtedly in a phase of “peak supply” in Brisbane and Sydney, this is due to an unprecedented amount of demand that matches that supply. The typical symptoms of oversupply, including a crash in prices and increased vacancies, are not present.
Terry and Sally both noted that there has been increasing demand for house and land from foreign buyers, while Sam shared that the overall sentiment from Chinese buyers has remained positive. Sam also shared with the audience how Salta are deepening their networks overseas and key strategies for doing so.
Matt discussed the recent changes to stamp duty for foreign buyers and how it’s impacted the industry, noting that it could either “put people off, because of A the cost and B it’s not sending a nice message of ‘come to our country’ “, or it could have the opposite effect and increase demand because they fear they’ll eventually be shut out of the market. Sally indicated the latter was the case, as June last year was one of Ivy Real Estate’s busiest months ahead of the stamp duty increases that took place in July.
After much more talk around banking policies, black-listed suburbs, and the future of the market, the discussion closed with a few Investorist-branded door prizes handed out to some lucky guests.
A big thank-you to our panellists for their contribution to the event, to PwC for hosting and partnering with us, and of course to all our members, clients and friends who participated both in person and online.
If you’re an Investorist member, keep an eye out for the next industry event coming soon. If not, enquire now to find out how we can help your business.