08 Apr
There’s been no shortage of headlines lately pointing to disruption in the property market.
Rising costs, policy uncertainty and supply constraints, which are all valid.
This period is shaping up to be a defining one for the housing market.
Disruption is already showing up
We’re starting to see early disruption signals across the industry:
- Fewer inspections in some markets
- Ongoing pressure from housing supply shortages
- Rising costs across construction, operations and travel
- Continued policy uncertainty around tax settings
- Auctions being called off
- Clearance rates down
Add to this we have a Federal Budget and RBA rate announcements in May, and the Treasurer has said that there will be tax reform in the budget.
The impact of fuel on our cost to serve
Fuel is one of the most fundamental inputs in real estate.
Our industry is built on movement; travelling between properties, conducting inspections, meeting clients – so when petrol prices rise sharply, it has a direct impact on how businesses operate.
This is where macro pressure becomes operational reality. It’s not just about market conditions. It’s about how much it costs to deliver the same level of service.
The next shift isn’t dramatic, it’s practical
What we are starting to consider is whether some of the flexible models adopted during COVID may re-emerge, not out of necessity from a health perspective, but from a cost and efficiency standpoint.
That could look like:
- More inspections by appointment
- More structured inspection windows
- Increased use of virtual inspections
- Greater collaboration across offices to reduce duplication
From a business perspective, it becomes a question of efficiency. Are there ways to achieve the same outcomes with less time on the road?
There’s no immediate need to overhaul how agencies operate, but there is a clear advantage in being intentional early.
If these cost pressures continue, the industry will need to be proactive in adapting. The agencies that start thinking about this now will be in a much stronger position.
What the data is signalling
Last week, Aussie/Lendi and REIP hosted 50 industry leaders at The Collective, sharing the economic insights shaping today’s real estate market.
While there is a lot of focus on external pressures – inflation, rates, supply – the growing shift is happening in how agents interpret and respond to what’s in front of them.
A few signals from the data:
- Inflation remains elevated, with further pressure likely
- Economic growth has held up, but may start to soften
- Housing supply continues to fall well short of demand
- Price growth is being driven by more affordable markets
- Rental conditions remain tight, but headline figures don’t tell the full story
None of this is entirely new. What is changing is where the advantage sits.
REIP is bringing to life unique data sets such as volume of appraisals, buyer movement and rental rates. At a time where markets are shifting quickly, the ability to understand signals on what’s happening, not just what’s being reported, is quickly becoming the difference.
These signals are what will help businesses and agents see supply before it hits the market, understand how buyer demand is really playing out and identify pressure points in the rental system before they show up in headline numbers.
Now, much of this data is being captured at an office level, and in many cases, it stays there. What we are working towards is something broader.
A connected, industry-led view that brings these signals together in a way that can be understood, shared, and applied at scale.
Until next time,
Stay connected.
Sadhana Smiles
CEO, Real Estate Industry Partners
Your industry-backed and owned CMA and market insights tool helping you drive your real estate business with your data
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