Randolph Clements on the Victorian Property Market

February 2010 - Author: Randolph Clements

It’s a fresh new year after an amazing 2009. Economic downturns and upheavals – followed by stabilisation and a return of the economy to a comparatively even keel – demonstrate the value of objective, level-headed and pro-active strategies in times of trouble. Panic at the first sign of challenging situations, whether economic or otherwise, is not only counter-productive, it wastes time and energy that is better utilised in focussed solutions.
We witnessed the property market not only hold firm, but gain incredible ground with exceptional growth. We saw an Australian economy overcome pretty overwhelming odds, defy a recession and out-perform the world’s major economies. Performance outstripped expectations, with the combined impact of government initiatives, emergency-level interest rates, and a resilient Australian public resulting in positive economic growth.
Unemployment levels tumbled well below expectations in the latter part of the year and, with a substantial lift in business and consumer confidence, spending and investment levels increased. According to Westpac, January’s consumer confidence index was 33.6% higher than a year ago, despite rising interest rates, suggesting mortgage holders have successfully absorbed the increases. House prices not only strengthened, they exceeded pre-global financial crisis levels! All in all, it has indeed been an excellent effort and outcome – achieved through a measured response, and not through an emotive reaction.
Similarly, real estate companies that have stood the test of time have successfully navigated their way through their fair share of ups and downs. They ride the waves of booms, dips of recessions, and rollercoaster of ever-fluctuating interest rates. They develop and implement innovative strategies and maintain a certain steady handling. An ability to adapt proactively to any circumstance with flexibility and confidence, combined with a sound understanding of market trends and cycles – and cycles indeed they are – ensures continued success in a competitive real estate industry.
I am indeed proud to be part of the broader Raine & Horne network, which was established in 1883. The network spans every Australian capital city, state and territory, along with the international markets of more than ten countries. The more challenging the external factors – the property market or state of the economy – the more innovative the group becomes, the more it thinks ‘outside the square’ to facilitate optimum client and franchisee success.

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