By Greville Pabst FAPI, FRICS

Welcome to the autumn edition of Property Outlook Magazine.

I have just returned from a four week break in the United States visiting Los Angeles, Las Vegas, New York and Washington D.C., and I am happy to report that Australia’s property market is in much better shape than that of its American cousin.

The Global Financial Crisis devastated US real estate markets in 2008, with major cities Las Vegas and Miami being two of the hardest hit and realtors reporting falls in housing estate prices of up to 50 percent. However, unlike the US, Australia currently has an acute national housing shortage, which will continue to underpin property values in the foreseeable future.

In managing this supply shortage and backlash from Australian homeowners the Foreign Investment Review Board (FIRB) issued further changes to foreign investment regulations in April to manage the supposed influx of investors who are said to be driving up local property prices. The amendments to FIRB regulations governing the purchase of Australian residential real estate by both temporary residents and foreign non-residents include:

• Foreign non-residents can now only invest in property that adds to the housing stock, such as new dwellings or the redevelopment of existing dwellings to create one or more subsequent dwellings.
• Investment in established property is only available to temporary residents and the property must be sold once they depart Australia.

The new regulations also include stricter penalties for breaches of the Foreign Investment Act and new measures to ensure compliance, monitoring and enforcement of the new conditions.

As Australia’s property markets continue to surge in 2010, WBP Property Group’s valuation business continues to perform strongly, with valuation volumes increasing by some 15 percent across both residential and commercial sectors. WBP now has 11 offices located in Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart, Newcastle, Geelong, Frankston, Kyneton and Warragul with representation in most capital cities and
many regional areas. WBP also continues to diversify. Now a national property group, WBP offers residential and commercial valuations, buyer advocacy, vendor advocacy, property management, corporate advisory and real estate services.

Our growth and diversification comes at a time when the valuation industry is undergoing monumental change, that being the acute consolidation of our industry. Valuation firms are getting bigger and within the next three years I predict that our industry will be controlled by three to four super firms, each with hundreds of valuers, national representation, centralised registration and distribution and advanced technology platforms with connectivity to aggregation and bank systems.

The recent $46 million acquisition by researcher RP Data of Valex, Sandstone and McGraw Hogg national valuers is a significant investment that will change the way property valuers interact with the banks around Australia.

While the valuation landscape continues to evolve, so too does WBP’s corporate advisory arm, successfully negotiating the sale of two Medical One centres for $4,875,000 and $2,700,000 in Sydenham and Doncaster, in conjunction with commercial agent CB Richard Ellis. The deal, brokered by WBP’s Antony Belcher, is part of the advisory services offered to commercial vendors and buyers.

WBP’s commercial property management business, Retail Realty, is also consolidating, relocating from Richmond to WBP’s head office in North Melbourne in May.

The launch of WBP Residential Advisory, a buyer and vendor advocacy service, managed by Wesley Inkster, has been a huge success, with many off our residential clients lending Wesley’s experience when buying or selling their real estate.

Thank you for your ongoing support and, as always, I am grateful for your trust in WBP as your preferred supplier of property valuations, real estate and property management services.

Warm regards,

Greville Pabst FAPI FRICS
CEO & Director

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