Barry Thom and Grant Lynch

Directors of Unlimited Potential

As we progress into 2019, there is a sense of postholiday optimism in the residential market. The market undoubtedly slowed in 2018, for a range of reasons, not the least of which was a sense of uncertainty on the back of some fundamental changes.

However, it would seem things are thawing. Activity is increasing. We are observing renewed competition for some properties.

One of the potential grey clouds on volume and values continues to be the impact of the Government’s Overseas Investment Bill. This controversial piece of legislation is designed to limit foreign ownership and came into effect from October 22, 2018. 2019 will be the year the market place provides a verdict.

We note buyers are encouraged by the unchanged Official Cash Rate and with it the indication that interest rates may hold to 2020. In short, we would expect an increase in sales activity in 2019. Why? Because it feels as though the market has swallowed the pill on the change of government and there is a sense of “let’s get on with it”. Similarly, there is now a general acceptance and consensus that values have plateaued, making the relationship between buyer and seller more conciliatory.

Slowing the pace of listing and selling real estate is the introduction of the Anti-Money Laundering Legislation, effective from January 1. This has made the process of listing a house for sale more onerous, timeconsuming and, in the case of property owned in a trust, quite invasive. It seems odd that the real estate industry is included in this information gathering, as it would appear a duplication of the client’s solicitor’s function. Our hope is that common sense will prevail and a more streamlined system evolves.