Meanwhile, commentators have interpreted the most recent RBA statement as indicating Australians can expect up to three further rate cuts of around 25 basis points each this year. But according to some, new liquidity rules forcing lenders to hold more retail deposits will mean lenders will face higher funding costs for the next two years.

As well as battling negative feedback, the banks are struggling with a significant slowdown in consumer borrowing. CBA is the latest lender to announce staff cuts, with 100 jobs due to be cut as the bank closes its Melbourne mortgage processing unit.

While it is disappointing that Australian lenders failed to pass on the full benefit of the RBA’s recent stimulatory action, cuts of an average of .36% teamed with the expectation of more cuts to come is likely to boost confidence in the property market. Although the market is already showing signs of increased buyer activity, vendors should not make the mistake of thinking the activity will necessarily result in increased prices, but instead understand the environment is likely to presents greater opportunities to secure a buyer at current market value.

Did we hit our magic baseline $2billion in April sales? – that figure that we see as our platform. Yes we did – but help came from some surprising quarters. New Zealand keeps outperforming expectations. The results from our Indonesian network took our breath away.

Indonesia has had it tough for the last ten years. Interest rates up to 19 per cent; their joy when rates dropped to their current 8.5 per cent. Their market is now incredibly active. Prices increasing by up to 100 per cent in twelve months. A friendly reminder to all Australians of the reality and certainty of cycles. If Australian mortgage rates were as high as Indonesia’s currently are there would be black despair! Yet they are booming. It reminds one of the expression ‘when things are tough people expect them to get tougher again, when things are on the improve people expect that improvement to go on forever’. Both expectations are invariably wrong.

On the rural front, the debate on coal seam gas is creating unwanted nervousness from the traditional supporters of rural property. This additional uncertainty is on top of the water debate and the question of whether Australia should take a greater interest in its long term food security. Recent sales, where the intention of new owners is to provide food security exclusively for foreign markets will, in our view, add to the issues. Thus the pending Ray White sale of iconic Victoria River district properties in the Northern Territory will be followed with great interest.

Loan Market figures were up 16 per cent on last year but reflected seasonal trends. But people are out checking their financial capacity to purchase.

Commercial businesses have seen upward momentum as well. For the first four months of 2012, compared with the same period in 2011, trading is up 14.9 per cent. Positive signs as we are about to head into the stronger transactional period post-Easter through to December.

On the property management front, the need and opportunity to increase property management standards will be the central focus at the forthcoming Wealth Conference on 3-4 June at the Gold Coast.

What’s new at Ray White?
Next month we celebrate another milestone – 110 years since Ray White opened his tiny railway siding shed – ready to do anything to service his community of just one hundred people.

Not much use having a milestone if, at that point, the Group is not in the best “shape” it has ever been. Others will need to be the judge. We remain obsessed with the need for constant improvement.

We have had a number of new office openings (contrasting to the number rebranding to us in recent years). It’s a positive sign. In fact it’s a good time to open a business – vendors seek agents possessing energy and new ideas in selling campaigns.
We have seen new office start-ups in recent weeks across Australia and New Zealand including Coogee, Woollahra, Cessnock, Narraweena, Lakemba, Hawthorn, Point Cook, Taylors Lakes, Melbourne CBD, Frankston, Hawthorn, Central Launceston, Burnie, Hobart and Andrew Acton at Townsville Central. A new division, Ray White Business Broking, has been started by Paul Gogia in South Australia and the Northern Territory.

We continue to see great existing businesses choosing to have a change at the top of their game to Ray White. Clint Wallis at Townsville and our new offices at Strathpine, Montville, Redcliffe and Nerang in Queensland are examples. So too Wentworth Point, Quirindi and Merrylands in New South Wales; Geelong West, Highton, Pakenham and Taylors Lakes in Victoria and Ray White West Lakes and Aldinga in South Australia. In New Zealand, 3 key offices comprising the Dianne Quinn Group rebranded in the Northland district.

Service, above and beyond, is such a critical factor in business. We saw a great example of this in the property management team at Ray White Tokoroa in the central North Island of New Zealand who have been awarded the quarterly property management award for Outstanding Service exemplary to Ray White by volunteering to learn sign language. The portfolio has a high number of deaf clients who without their sign language can only express their intentions by writing everything down.

The increasing confidence of our members to the future shape of this industry, where a real estate office will more closely reflect a community-centre with a deeper range of information and activity has been showcased. Wilston in Brisbane being the most recent.

Of course, the RBA’s actions can only have a stimulating effect if the banks pass the savings
on to their customers and within days of the announcement, three of the four major lenders
had confirmed they would drop their variable rates – NAB by .32%, Westpac by .37% and
Commonwealth by .40%. Although there is still some contention over the lender’s justification in
out-of-cycle rate setting, the drops still represent significant savings to mortgage holders.

The RBA’s position on rates is good news for consumers and property owners and is expected to
bring a renewed confidence and optimism to a property market that has struggled under some of
the toughest conditions seen for some time. The latest round of data from the Australian Bureau
of Statistics (ABS) showed that house prices fell during the March quarter, led by declines in
Melbourne, Hobart and Sydney. Many commentators are now saying the RBA’s actions will cause
the market to bottom out as buyers move back into action.

The announcement is likely to bring many buyers off the sidelines, creating opportunities for
vendors who have been waiting for conditions to improve. It is premature to judge the likely effect
on house prices at this point, however, with future conditions still unpredictable.

Whilst the business owners Jenny and Dave Lamberton, were away on holiday, the team took it upon themselves to attend sign language classes after hours, showing their initiative, dedication and commitment to client service. Jenny Lamberton said “I was just so impressed at what they chose to do whilst we were away, I feel it is above and beyond the call of duty and shows extreme dedication to customer service. Dave and I could not be more proud of our Award Winning Property Management Team.”

Caption: left to right Carla Pentecost – Property Management administrator, Abbie Harker Ferguson – Property Manager, Angela Nuku – Property Manager.

Both Andrew and Tim have lived and operated in and around Redcliffe for a decade and bring a wealth of local real estate knowledge to the new business.

“The real estate market in and around Redcliffe is incredibly diverse, ranging from older homes under $300,000 to the multi million dollar waterfront and canal homes,” Mr Campbell said.

“After a few very slow years, the sales and rental market in the area is beginning to turn around with more and more sales being recorded and very low vacancy rates for rental properties.”

The area is popular, according to Ray White Queensland joint Chief Executive Tony Warland, because of the culture.

“Redcliffe is Synonymous with holidays and tranquil lifestyle, water and established beaches. A lot of people have lived their whole lives up in Redcliffe,” Mr Warland said.

“We are quietly excited with the freshness and vitality of Andrew and Tim. They are young and exciting…but don’t be mistaken, their knowledge around proving great community service through real estate has already been recognised with the success of their business.”

“The quality and style of these two gentlemen will be easy to recognise through Ray White. Our dynamic company needs dynamic people and we are very excited to see this new relationship moving forward.”

Andrew Campbell began his real estate career in land sales in 2003, instilling in him a strong work ethic and valuable people skills. After managing a growing rent roll for four years his role changed to that of business development manager.

“Utilising his strong work ethic and approachable personality, he has succeeded in surpassing his clients’
expectations,” Mr Warland explained.

Tim, too, has achieved a lot in his real estate career.

“After working as Senior Property Manager for a Queensland-top-five Ray White office, he moved to
a real estate business in Redcliffe to help expand their property management and then became the
principal of Infinite Property Management.”

Tim says the duo’s goals included being indisputably recognised as the best.

“It is our goal to become the number one real estate agency in our local community,” Mr Gordon said.

“We will do this through great service, professionalism and a fresh approach in a market that is currently suffering from out-dated office cultures and ideas.”

“Becoming a part of Ray White will open up many more opportunities for us as a business as well as our
clients.”

“With access to a national network of professionals and services such as Loan Market, Concierge and Ray White Insurance, the benefits of the Ray White brand are unmatched.”

Brian White of the Ray White Group said his offices across Australia and New Zealand achieved the same turnover result in April this year as they had in 2011 – some $2 billion worth.

“The New Zealand component in 2011 was higher than the previous year. There was a relative weakness in Australia but nowhere near the published perceptions,” Mr White said.

“The interest rate drop of 50 basis points is significant… it’s dramatic. It’s a statement that the Reserve Bank wants something to change,” he said.

“Australians hate the thought that they may have missed the bottom of the market and we anticipate a significant lift in confirmed sales. We base this upon a strong number of open-for-inspection attendees.”

“We’ve been very much under the impression that buyer reservations are based on a feeling that the Reserve Bank may have decided to keep interest rates at previous levels.”
END

Contact: Lyndsey Douglas 0424203935 media@raywhite.com

Experts are now saying Australians can expect not one but perhaps several rate cuts over the coming
months, with the retail and construction industries facing real challenges. But with the dynamic
that’s been developing over the past few months between the RBA and the banks, there is no
guarantee any action by our central bank to ease the pressure will be passed on to consumers.

Westpac boss Gail Kelly refused to be pressed last week on whether the bank would pass on any cut
and she’s not alone. The major lenders continue to spruik the increased cost of wholesale funding,
even though the percentage of off-shore funding has halved from 40% to just 20% over the past
three years.

Although talk of an interest rate cut normally sparks enthusiasm and confidence in the property
market, consumers have become jaded in recent months as the banks have continued to implement
out-of-cycle interest rate increases. The property industry calls on banks to do the right thing and
allow the RBA’s actions to filter through to the wider economy by passing on any official cut in full.

Former grazing land south of the city is the next major residential area, contributing to an upswing in development lots after a subdued three years.

The site sits near the main linking highway between Geraldton and Perth; it adjoins – and is around half the size – of the large, nearly-complete Rosecrest development.

“The market here is ready for a new subdivision development,” marketing agent Ian Wheatland of Ray White Geraldton said, “In a normal market Geraldton takes up 350 to 400 lots per year. A recent count realised a total number of only 150 developers’ lots left on the market with approximately 350 resale lots available.”

The site will undoubtedly leverage on the success of the nearby Rosecrest Estate, with a school and Woolworths complex due for completion in 2014.

“The City of Geraldton recently purchased adjacent land for use as sporting grounds and light industrial and residential developments,” Mr Wheatland said.

The average lot size is 633sqm. Over half of the 664 undeveloped lots have ocean views, a large portion of the remainder have hill views.

Located at Greenough, seven kilometres from the Geraldton CBD, the site is one and half kilometres inland.

The land value is estimated at around $17.5million.

The closing date for submissions is Thursday 31st May 2012 at 4.00pm.

For further information, please contact Ian Wheatland on 9965 7604 or 0427 811 733.

The sun hasn’t been shining on the beachside property market in Yamba on NSW’s north coast in recent months, so a strong sale on Saturday proved a surprise.

The auction of an historic 1920s beach cottage, overlooking the beach and the mouth of the Clarence River, attracted 46 buyers in five weeks and resulted in 38 inspections of the property.

The cottage, “Morningside” at 10 Queen Street sold for $610,000.

Buyers came from as far as Melbourne and Gladstone and everywhere in between. Tb)he actual buyer was from Lismore.

“There’s plenty of talk around the market being dead here. But this really proves it’s not,” marketing agent Daniel Kelly of Ray White Yamba said.

“Older residents of Yamba and even some of the more recent residents have come to know the property very well – mainly because of its original “cottage” style. It was one of the first cottages to be built on Yamba Hill.”

It was built by a family in rural NSW and was used originally as a fishing cottage. Morningside is positioned on Yamba’s hilltop in a wide, quiet street which enjoys an outlook directly across the nearby headland to the ocean.

The location is convenient to Yamba’s CBD as well as cafes, restaurants, beaches and the pub nearby.

“Very few people are selling via auction at the moment in this area and the days-on-market for properties are long. For houses in the local market, the average days for listing through to sale is 167. This is much longer than the national or state average.”

“Fortunately, going to auction with the property meant buyers had to act and act quickly.”

“The market is showing marked improvement. Turnover has become much more consistent since the start of 2012 and property which is well marketed and well priced is still receiving good interest.”

Contact:
Daniel Kelly, Ray White Yamba, 0408 669 646
Lyndsey Douglas, Ray White Group, 0424203935

It has been called the world’s best penthouse and even if it isn’t, it is surely in the running.

The Soul Penthouse on the Gold Coast’s coveted Cavill Avenue was purchased off the plan in 2006 for $16.85million and is on the market again today.

A private internal Italian glass lift and staircase give access to the four-level penthouse, with six bedrooms, six car spaces, 24-hour room service and concierge.

Sitting on the 70th floor of the Soul building, marketing agent Karyn O’Dea of Ray White Robina Varsity says there’s nothing like it in Australia.

“From every angle you are greeted with breathtakingly beautiful uninterrupted views of Surfers Paradise’s golden beaches and the Pacific Ocean,” Ms O’Dea, who is advertising the property worldwide, said.

From a vantage point more than 240m above Surfers Paradise beach, Soul’s panoramic views stretch north to Stradbroke Island, south to Coolangatta towards Byron Bay, and out to the hinterland.

“The Soul Penthouse is huge, roughly 1040sqm, and it’s up so high that the wind factor is almost nil despite being on the shore,” Ms O’Dea explains.

“The luxurious penthouse is being offered to the international market where it is at the pinnacle of properties at this category.”

“It’s really the world’s best bachelor pad,” she said, “And the current owner, who is involved in one of the largest equipment hire businesses in Australia, now has a young family so he’s putting it on the market.”

“It has a huge master bedroom and ensuite with steam shower, spa retreat, servant quarters and every level has a balcony.”

View the apartment here: http://www.worldsbestpenthouse.com/

Contact:
- Lyndsey Douglas, Ray White Group, 0424203935 or media@raywhite.com
- Karyn O’Dea, Ray White Robina Varsity, 0402 005 706 or karyn.odea@raywhite.com

Expansive balconies on all levels: 70, 71, 72, 73.
24 hour room service and concierge
Rooftop pool, spa and entertainment area
Private internal Italian glass lift and staircase
24 hour room service plus concierge and house keeping
2 minutes to closest marina
27 minutes to Gold Coast airport
Size: 1,040m2 (11,190ft2) of indoor and outdoor living
Sale: Expressions of interest before 15 June 2012.