Wednesday, January 04, 2012

2012.....time to get serious

Property owners, investors and sellers – it's time to get serious. Last year caught many of us by surprise.  The market changed and I feel Toop&Toop took too long to change things up to match the demands of the new conditions.

In the second half of the year we did respond appropriately ending the year strongly for our clients. The changes really kicked in.

So what does 2012 look like from our perspective?

Firstly the market. Property relies on consumer confidence.  With Europe remaining on a knife edge - this is the challenge for property owners in 2012. The silver lining is that interest rates may continue to fall. In 2011 with softening of prices, lowering of interest rates and increases in salaries, affordability has returned to high levels. The 30% drop in real estate transactions in 2011 meant there are increased levels of demand built up. There are a lot of people who need to move – and haven't yet. Given we have no blow out in unemployment, that is a very healthy set of indicators.

But there's more....

First Home Buyers have been dormant for 18 months due to the end of the First Home Buyers Stimulus Packages. This means we also start the year with a solid pool of First Home Buyers... again, a great scenario.

Available stock. There is none. There is no oversupply.  In fact supply is as tight as a drum.  This is significant and created by a number of factors, including the fact banks have been rejecting funding of developers projects for around 18 months.

But there's still more....

South Australia in 2012 sees the realisation of a string of massive projects - including the Adelaide Oval and Torrens redevelopment, (this will transform Adelaide), the new RAH, the BOWDEN development, the Southern Expressway.....not to mention the mining and the Defence projects....these are big stimulus factors given we are such a small state.

Boom time? I doubt it! However I am confident property will push through the global economic disasters that will challenge us this year. People acclimatise. We all get older and life goes on, there is only so long that people will put their lives on hold. South Australia is a good space in property.

What about Toop&Toop? Well in 2011 we have had to deal with market changes and changing consumer needs.

In the second half of 2011 while others are 'Corporatising', we 'Decorporatised'!  Sylvia and I are completely hands on again working alongside and coaching our team, back to family business values again. Back to basics, but with intense focus on Innovation and reinventing real estate. We have refocused to give our clients the edge. Our mission is clear - do things better and smarter than competitors to give our clients the best outcomes.

2012 for Toop&Toop is about Leadership, Innovation, Results and People.

Anthony Toop
Follow me on Twitter: @Anthony_Toop or call 0418 824 188

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