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Proptech Carpool – Eastern Suburbs Market Wrap

November 27, 2019

Ric Serrao from Raine & Horne Double Bay & Bondi Beach features on the show to chat about various topics.

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Here’s the transcript of the video:

Ric from Raine & Horne Double Bay, thanks so much for joining the Carpool series with Soho.
No, you're a pioneer.
Yeah. I heard you’re a killer on the karaoke as well.
Is it true? Do you want to do the carpool karaoke?
No. I don’t.
Oh ok. I won’t push you.
You’re misled.
Unless it’s a bit of Bon Jovi or something.
Yeah sure. Hey, I’m open to anything.
Let's talk real estate.
I guess luxury property market.
It's kind of right up your alley, Eastern suburbs.
Yeah. How's the market performing? How’s a bit of a market wrap?
Market wrap. It's certainly kicked it.
And it’s interesting I was just talking to a client a little bit earlier on,
we we were all putting our prediction for next year.
My gut is, look I'm not an economist.
You just talk to people on the ground, and I think small business has been suffering.
Hence rate drops and what have you and you know,
cheap interest rates means asset prices tend to go up.
So prices have been strong in certain areas for certain things.
If you take the beach areas, for example
apartments with views have just got nuts.
Semi’s, in the coastal suburbs
of Bronte, Tamarama and Bondi/North Bondi.
I would suggest like where you're paying
$2mil - $2.2mil three months ago.
You're now paying to $2.2mil - $2.4milfor an unrenovated place.
So there's definitely been a good 10% shift north of what it was.
I think the whole market, even the top end.
There’s just so much money out there.
Yeah.
I don't know where they’re getting it from.
But there's a lot of money out there and I think because of our dollar as well,
there's a fair bit of overseas transactions kicking in.
Okay.
Yeah.
Advice for vendors at the moment. Do they sit and I mean,
you know, end of the year is fast approaching.
Do they sit and wait for 2020 to kind of kick in? I don't know but what are your suggestions?
Look, I actually think it comes back to your circumstances.
I mean effectively we've got Christmas around the corner,
you know, we're pretty much signing up our last campaign next week to make it before Christmas so to speak.
What I'm hearing and the data that we're following
is that we got a little bit more stock coming on but we're not going to get an oversupply.
So I think while money is cheap,
the market’s gonna be quite active, in my opinion anyway.
It's interesting though, rates have come down and some of it's been passed on but as I say,
there are some people in small businesses that are still hurting
and are needing to sell so it's really interesting that there's actually a bit of mortgage pressure
out there in the Eastern suburbs also.
So if I was a vendor I'd be watching what my competition is.
I mean, if I had a semi in North Bondi and there were six other semis in North Bondi, I’d probably wait.
You know if I had a
garden apartment somewhere with no competition I’d probably put it on.
I think supply and demand.
Gotcha. And I guess lastly kind of, you touched on it before, but I guess 2020 Market predictions Q1.
What do you feel?
I think price-wise, it will continue to rise.
I’d be interested to see if there's another rate cut or not.
I actually don't think they need to cut rates, personally.
I think they just need to ease lending, the lending criteria.
Now whether that will happen ever again or not, who knows.
But I think the market’s going to start strong,
I think it’s going to start early and the investors are back in the marketplace.
So there’s competition. I was talking to a gentleman today.
He's pulling out some serious money out of the stock market.
He was telling me about certain companies that he’s had stocks in that are worth billions of dollars and they’re not making a profit.
So he's taking money off the table and putting it into property.
We haven't seen them for a couple of years.
So I think it's going to start strong.
Yeah.
Contact details, let’s say I’m a buyer or a seller.
How do I get in contact with you?
Easy.  0412 072 178
Or just Google Ric Serrao and it’ll come up with some old youthful photos.
Ric, thanks so much for joining the Carpool series with Soho.
No, pleasure, thanks for having me on.
Soho
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