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Peter Hanscomb, CEO of Belle Property Australasia, predicts that 2019 will not be without its challenges. He said that of the myriad little hurdles ahead, two big ones stand out, and they will shape the coming year.
The first is the federal election.
“There’s a federal election, which will no doubt shape the market regardless of its outcome, especially given residential property has become a key topic for debate on both sides,” Mr Hanscomb said.
The second is the banking royal commission.
“We will witness how the banks react to the royal commission, in terms of available finance and willingness to allow projects to happen. As an industry, we also have a lot of stock due to hit the market at the beginning of 2019.”
Mr Hanscomb said that these will combine and likely lead to a sweeping lack of confidence.
“The agents that will be successful in this kind of environment are the ones that are truly market-relevant and strategic in the way they find, win and service their clients.”
Substance
In 2019, Mr Hanscomb said that he’d like to see more strategy and business focus across the industry.
“For too long, our industry has been known as ‘shiny’ and our agents have focused on the ‘show’ rather than the substance,” he said.
“I’d like to see our industry shift its focus from creating a certain lifestyle to focusing on strategy, business growth and optimising the customer experience.”
He said that consumers are getting savvier, and the industry needs to follow suit.
“Being a strategic, customer-centric operator becomes even more important when you consider what our industry will look like in the future.
“Once Millennial and Gen Z buyers hit the market, we’re looking at a consumer that is extremely savvy at cutting through the noise and knows how to distinguish between what’s real and what’s not.
“If we’re only thinking about ourselves, our next dollar, our next shiny toy, and we’re not adding value, offering transparency and guidance, then they’ll see straight through that behaviour. We’ll lose the client quicker than the time it took to find them.”
Mr Hanscomb also said that the make-up of the industry is likely to change.
“As our capital cities continue to grow and transform, and our young clients continue to choose lifestyle over ownership, we’ll also be looking at fewer owner-occupied properties, particularly in our CBDs,” the CEO said.
“It’ll be a race to the customer for our agents, with only the best securing the opportunity. Our concentration will need to be on fewer but better client relationships built on a foundation of exceptional customer experience and genuine desire to build and maintain a relationship.”
