Ray White scoops Queensland salesperson of the year
Friday 23 September 2005

Ray White Maroochydore agent Amber Werchon has been crowned the Real Estate Institute of Queensland’s Salesperson of the Year.

Last night 22 year-old Amber became the youngest person to claim the title, three years after she was named REIQ Rookie of the Year in 2002. For the past two years Amber has been recognised as the top seller on the Sunshine Coast, north of Brisbane.

REIQ managing director Don McKenzie said that the award was not based solely on sales figures.

“Entrants are assessed on a range of criteria including service to clients, business development, industry involvement, professional development, marketing and advertising skills, and industry support,” he said.

Amber joined Ray White at 17 and quickly proved her ability, selling $44 million worth of property in her first two years of sales.

Ambitious and hard-working, Amber has continued to set a marvelous example to young people who aspire to a career in real estate, remarked Ray White deputy chairman Sam White.

“Amber is an inspiration to us all and is proof that age is no barrier to success,” he said.

“We are continuing to see more and more young people pursue a real estate career and Amber is a great example of what can be achieved.”

Ray White Queensland fosters career development of young people through its popular Youth Program, which provides an all-bases traineeship before moving into either sales or property management full-time. For more information contact Lauren Wallace on 07 3231 2211.

raywhite.com launches new mapping system

Friday 12 August 2005

Ray White Real Estate has launched an advanced mapping system for its website listings on raywhite.com, in an Australian first for a real estate franchise.

According to Ray White Chief Information Officer Tom White, it is the first of many changes coming to raywhite.com over the coming months.

“I’m pleased to announce the immediate launch of an advanced mapping tool on raywhite.com. We also have plans to introduce map-based searching capabilities where buyers will be able to filter by price, dwelling type and other features,” he said.

The map function for each particular listing outlines the actual lot and is designed to show major landmarks like hospitals, schools and shopping centres.

The images are supplied via aerial photography and satellite images.

Mr White said the function was designed to make home hunting easier.

“raywhite.com’s new mapping feature means you’ll immediately have an awareness of the surroundings of a property before you drive out to see it.

“You can also see exactly how a house is situated on a block and its dimensions.

“This is really exciting technology for home hunters because the information is available with the listing – you don’t have to search for it elsewhere.” 

Abolished vendor duty welcome news for the market

Tuesday 02 August 2005

The decision by new NSW premier Morris Iemma to abolish the state’s unpopular vendor duty has been applauded by Ray White deputy chairman Sam White.

“Mr Iemma has sent a clear message that investors can conduct business in NSW with the knowledge that they are no longer being punished unfairly.”

Mr White said he expected investors to cautiously follow Mr Iemma’s suggestion to “Go for it”.

“Investors will return to the market gradually now that this significant impediment has been removed. We won’t see an overnight change, but now that the artificial blockage of vendor duty has been unplugged, we’ll see a steady increase in confidence from investors.”

Mr White also said that the pressure would be taken off the rental market.

“Investors have been absent from the market for the past 12 months. The lifting of the vendor duty means the rental market will be able to meet the future demand from tenants as Sydney continues to grow.

“We can expect to see an easing of vacancy rates over the coming quarters.”

Australian Business Economists Property Outlook
Thursday 7 July 2005

Recently, Ray White Group Deputy Chairman Sam White addressed the Australian Business Economists’ annual Property Outlook on the state of the Sydney market. Here is an edited transcript of his presentation. 

Twelve months ago there was widespread concern about significant weakness in the market. Some commentators predicted significant prices falls throughout Sydney and indeed the rest of Australia. There was real concern about the depth of demand and a feeling that if the pattern of previous cycles held through, property owners were set to face a significant hair cut.

That hasn’t happened. The headline is that pricing has remained relatively stable.

In my opinion, there are two key reasons for this. Firstly, stock has been tight. The number of properties for sale in NSW last year fell by around 20 per cent. Unlike previous cycles following a boom, there have been some significant differences in this one.

This time around, interest rates have been stable, and the employment market has remained strong. Whilst many home owners have record debt levels, there are very few who are experiencing financial pressure. There are very few ‘for sales’ in the market at the moment - forced for financial reasons. This has meant that owners have been able to choose the timing of a sale. Most owners have resigned themselves to the fact that if they don’t get the price they want, “I’ll simply stay in my house and pay off debt”.  This decision is made easier by the fact that transaction costs become more significant in a market of stable pricing – in a market where loan to value ratios are north of 80 per cent, asset growth is moderate to neutral and 7-8 per cent in transfer costs is a big price to pay.

If anyone was still questioning the resilience of the property market, they would only need to look at what happened in March when the Reserve Bank lifted interest rates. At the time that many commentators were predicting multiple rate rises during this year. Indeed it was the prospect of further tightening rather than the initial change itself that most concerned buyers. We expected there to be a significant drop in transaction numbers and to some extent we saw that. But not to the level we feared.

As a result, pricing has remained relatively flat.

Of course, government policy in NSW has played a big part in the market. I’m sure you’ve all heard about the injustices of the vendor tax – that it is pushing investment and jobs out of NSW and into other markets. Indeed, Ray White Queensland has benefited enormously from this. But there is one segment of the market that is often overlooked when discussing the impact of the vendor tax, and that is tenants. The effect of this tax has been and will continue to be to reduce supply of properties available for let. And as is so often the case, artificial policies impact negatively on the group they are most designed to protect.

Vacancy rates for NSW have come down significantly. Rents have increased. The natural extension of the government’s policy on vendor duty will be for this to continue over the coming year. Whether this increase in returns for investors will be enough to entice them back into the market is an open question. But it remains a fact that tenants are one of the chief losers of this Labor Government’s policy.

Moving forward, the outlook for the housing market in Sydney appears to be more of the same. There are some very early signals that the market is starting to turn. A truer test will come as more properties start to hit the market towards the end of the year.

One significant variable will be the lenders’ credit criteria. One thing that is unknown is the credit profile of people that have taken new and innovative financial products from lenders, such as higher loan-to-value ratio home loans and lo-doc loans. Have these borrowers performed as the actuaries predicted? Or is the reality different? Obviously the tighter lenders get, the fewer buyers there’ll be in the market.

The NSW exit tax will also continue to play a major role in shaping the Sydney market.

Of course, the big variable remains the economy and property consumers’ confidence in it. Prospects for interest rates and employment will, as always, be the big macro factors that affect our market.

Whatever your view is on the economy, so to goes the housing market.

Ray White Invest achieves 32% gain in 12 months
Thursday  2 June 2005

A Ray White Invest syndicate has realised a 32 per cent capital gain in 12 months following the $10.4 million sale of the Tyco office/warehouse facility in Cannon Hill, Brisbane. 

The sale was negotiated by Neville Jensen of CB Richard Ellis and the buyer is Merrill Lynch Property Trust.

Ray White Invest syndicate partners acquired the property in May 2004 for $7.83m. 

The building, located on Corporate Drive in the Southbank Corporate Park in Cannon Hill business park, comprises 5,571sqm of modern office and warehouse accommodation and 120 car parks. It was sold at a yield of around 8 per cent and is leased to Tyco Australia Pty Ltd to July 2010.

Director of Ray White Invest Peter Walsh said he was extremely pleased with the sale.

“When we acquired the property, we were confident that we would achieve a material increase in rent at the market rent review in August that year” he said.   “We believed the passing rent was well under market.” 

The market rent review increased the rent from $108m2 to $156/m2, adding considerable value to the building. 

“The sale realises a 32 per cent capital profit in the 12 months of ownership” he said.  “This capital gain, in addition to the rental income received, delivered a substantial return on total equity invested”.  Only minor repair works were required during the term of ownership. 

In a separate transaction, Ray White Invest has sold a $11.6m industrial complex at Northlands, Brisbane in the Gateway industrial precinct.  Ray White Invest acquired the Northlands property in February 2004 in partnership with Dimensions Property Group, and undertook an extensive refurbishment of the buildings in addition to the development of a 12 unit industrial complex on a vacant part of the site fronting Nudgee Road.   

The Northlands industrial complex was sold on a yield of sub 8% to Merrill Lynch Property Trust. 

The refurbished complex is located on Raubers Rd, Northlands and comprises 13,000m2 of warehouse space across 8 buildings.  The complex has been fully leased during the refurbishment to 6 tenants including Space Furniture.

“The Gateway industrial precinct continues to power along.” said Tony Havig of Dimensions Property Group. “We were very pleased with the depth of tenant enquiry during the development, both for the smaller new industrial units and the refurbished sheds.”

Ray White Invest has either acquired or provided finance to $720 million worth of property projects since its formation in 2001.  Ray White Invest is the property investment and development finance arm of the Ray White Group.

For more information, contact Dan White on 0412 074 286 or Peter Walsh 0401 585850.

Investors will still be deterred from NSW
Tuesday 24 May 2005

The retention of the New South Wales vendor duty would continue to send investors interstate, Ray White deputy chairman Sam White said today.

While land tax amendments announced in the NSW State Budget were to be welcomed, Mr White said the Government had failed to accept the damage the 2.25 per cent exit tax had caused.

“The reinstatement of the land tax threshold is a welcome move, however this only goes part of the way in addressing the injustice of last year’s changes to property taxes.

“While vendor duty remains, people will continue to be deterred from investing in New South Wales.

“The Government has failed to face up to the reality that the vendor duty is a psychological barrier for investors. Over the past year it has reduced investors’ confidence in New South Wales and they’ve spent their money (and created jobs) in other states.

“It is questionable whether the vendor exit tax is actually a revenue positive move for the taxpayers of New South Wales because it acts as a deterrent for investors.

“This Budget has done little to improve the underlying uncertainty that many NSW investors have experienced.”

Mr White also said that tenants would suffer as result of the duty’s retention.

“With fewer people investing in NSW property, the rental supply will continue to dry up and that means higher rents for tenants.

“We’ve already seen falling vacancy rates this year in Sydney, so we can expect to see a continued squeeze on rental properties.”

Rates on hold will keep market stable
Wednesday 4 May 2005

The Australian property market would remain stable thanks to a second consecutive hold on interest rates, Ray White deputy chairman Sam White said today.

The Reserve Bank of Australia’s decision to keep the official cash rate unchanged at 5.50 per cent would be welcomed by home owners and buyers alike, he said. 

“Keeping rates on hold means vendors and buyers can negotiate with the confidence that the market is stable. “And if interest rates stay unchanged for the remainder of 2005, I believe most markets in Australia will experience modest growth in both prices and turnover. “For many would-be vendors, today’s announcement is an indication that they shouldn’t be holding off selling their properties in hope of a major change in the market.”

Mr White said that the Ray White Group’s April sales figures showed a moderate decrease in turnover across all states, apart from South Australia, which remained stable.

“Our April turnover reflects the uncertainty that was in the market when there was fear of another rate rise in May.” Mr White also said those who speculated about extremities in interest rate changes only brought undue distress to families with mortgages.

“Today’s announcement shows that speculation about multiple rate rises earlier this year caused unnecessary distress to those with large mortgages.”  

Rates on hold is a relief for the property market
Wednesday 6 April 2005

The Reserve Bank of Australia’s decision to keep official interest rates at 5.50 per cent will bring a sigh of relief to Australia’s mortgagees, Ray White deputy chairman Sam White said this morning.

Following the 0.25 per cent increase in rates last month, home buyers became more cautious in several areas of the Sydney real estate market, while other capitals across the country saw buyer inquiry levels remain unchanged.

Mr White said Ray White’s sales figures for March showed that last month’s interest rate increase had had a moderate effect on New South Wales, while other states reported steady sales.

“March total sales for the Ray White Group were in excess of $1.99 billion, including a firm increase in sales in Western Australia. We did see, however, a moderate decline in sales in New South Wales by 9 per cent.

“As Sydney is further ahead in the housing cycle compared to other capital city markets, it would have been considerably detrimental for the Sydney residential market if a further interest rate rise had been announced today,” he said.

Although many home owners are likely to be relieved that interest rates will remain unchanged for April, Mr White said it was not likely to be smooth sailing in the months ahead.

“I think there’ll be many families concerned over the coming months about another rate rise.”

He also said that while fear of another rate rise hovered above home buyers the Sydney market would remain patchy.

“Some of our agents in the outer ring of Sydney reported a marked drop in attendance of open for inspections following the last rate rise and another increase would see a further drop in buyer confidence.”

Learn from the real estate experts
Monday 14 March 2005

Real estate leader Ray White has announced it will offer external training courses in Queensland for those seeking a career in the industry.

The standard of Ray White training and support is legendary in the real estate industry and, according to training manager Nicholas Thiele, the network is now opening its doors to offer training to anyone seeking the ultimate in real estate education.

“As industry leaders in both the market and training, Ray White Queensland has now committed itself to passing on its industry know-how in courses conducted by the group’s respected and experienced trainers.”

Initially, the Ray White Centre for Excellence will offer places in a basic registration course which is required for anyone wanting to start a career in either sales or property management.  However, there are also plans to offer a wider range of training courses in the future.

The Centre will also be a nursery of sorts for the leaders of tomorrow, with the courses providing job opportunities within the Ray White network. Mr Thiele says the operation will benefit both those who enrol as well as the Ray White network itself.

“Ray White will become a one-stop shop for all your training needs, offering the highest quality education in the industry as taught by the most experienced operators. And equally important, we will have access to a pool of dedicated and enthusiastic people who we can then invite to take up employment within our network.”

Modules of the registration course will be conducted by a number of Ray White personnel including, Queensland CEO Peter Camphin and chief auctioneer Haesley Cush.

The Australian Property & Business College, tutored through the Ray White Centre for Excellence, is taking enrolments from today, Monday 14 March, for the first five-day registration course, scheduled for 11-15 April. The course will be held at Christie Corporate Centre, Level 6, 320 Adelaide St, Brisbane.

Strong sales in February, but what about March?
Thursday 3 March 2005

February was a busy month for real estate agents, especially in Queensland, where the Ray White Group reported its second highest sales result since the two interest rate increases of late 2003.

Ray White deputy chairman Sam White said the Queensland market continued to be buoyant, predicting that the latest rate rise announced by the Reserve Bank of Australia yesterday would only have a minor impact on the sunshine state.

“Queensland buyers should have confidence in their market for the long-term as prospects for the state remain quite positive,” said.

Western Australian, South Australia and Victoria also recorded healthy results in February, however, sales results in New South Wales were more modest, indicating that prices were stable and that the market had been bracing for a rate rise.

Across its entire network, Ray White recorded total sales of more than $1.84 billion, up 9 per cent from the previous February.

Mr White said the impending weekend auctions would be a good indicator of how people had taken the most recent rate rise.

“Most buyers have factored in a rate rise or two, although it’s possible things might be a little unsettled for the short-term while the broader market digests the increase.

“There’s also strong talk of a further rate rise in the coming months, but that has the potential to turn people one of two ways: it could just be enough to erode people’s confidence or it might buyers to get hold of a property more quickly so they can lock in rates before they rise again.

“After strong auction clearance rates in February, potentially March could be a little more subdued, but still firm.”

Prevention better than cure
2 March 2005

Although it may be unwelcome by many homeowners, the decision by the Reserve Bank of Australia to increase interest rates could avert more aggressive action further down the track, Ray White deputy chairman Sam White said today.

"While the property market has had a positive start to the year, there's certainly been no reason to deter buyers. However, a modest rise at this stage may help prevent more aggressive action in the future," he said.

Mr White also said that most residential property markets across Australia would not be significantly influenced by the rate increase of one quarter of a percentage point as announced this morning by the RBA.

"Many homebuyers have already factored in a rate rise or two. They've been waiting for this for the past 15 months, so it's really no surprise.

"Anyone considering buying property at the moment should be looking with a long-term view, and that means keeping possible future rate rises in mind."

Mr White also announced today that total sales for the Ray White Group in February were in excess of $1.8 billion, up 7 per cent from February 2004. Of particular note were strong results from Western Australia and South Australia.

Mr White said the figures, coupled with the Group's increase in January sales, reflected a stronger and more confident residential property market.

raywhite.com tops audited franchise sites
11 February 2005

raywhite.com is Australia’s most popular audited real estate franchise website, according to the latest data from Nielsen//NetRatings.

The website had more than 320,000 unique users during January 2005, almost 185,000 more than the second most popular audited franchise site.

Ray White deputy chairman Sam White said he was very impressed with the results, which reflected an increase in sales volume for the real estate network.

“We’ve seen a marked increase in people turning to raywhite.com as a reliable source for property hunting. We’ve also witnessed an increase in buyer inquiry through our offices.

“This in turn has led to healthy sales figures for January, even though it is normally a quiet time of year for real estate.”

raywhite.com’s increased traffic mirrored the rise in activity seen on Australia’s most popular real estate website, realestate.com.au, which experienced its busiest month to date in January with more than 1.6 million people visiting the site.

“The number of people visiting raywhite.com has jumped by 28 per cent. The average number of visitors to raywhite.com per month in 2004 was 250,000,” Mr White said.

The Ray White Group has more than 800 offices in Australia, New Zealand and South East Asia and is supported by raywhite.com which offers access to a wide range of services including: property searches, office details, free property appraisals, press release subscription, and Ray White Financial Services.