It’s been a tough year for the real estate industry, but things are beginning to look brighter. We asked two Commercial agents what challenges they’ve experienced, what they’ve actioned and what they predict for the years ahead.
BARRY JOHNSTON
Founder and Principal at Balmoral Partners
Challenges: Multiple challenges
The NSW Election brought Urban Renewal Planning Studies in key Sydney precincts to a halt. And the ALP’s negative gearing and CGT policies heading into the Federal Election saw many people acting prematurely to secure their positions. Land tax has also been an issue, with many property valuations growing by over 50 per cent.
Actions: Managing expectations
Educating clients and managing their expectations has been essential. They need to know what’s going on in the market, so they can plan ahead. Selling, buying and leasing strategies are usually long term, and forecasting and actively managing assets is required. It’s also been important to negotiate agreements with flexibility to ensure unexpected events can be dealt with early.
Predictions: Bright future
The future looks bright. We’re seeing people now wanting to invest, albeit in a considered fashion. We’re also seeing rents continue to grow in Sydney metropolitan areas. Investment in infrastructure is helping to drive this, particularly around metropolitan train stations and in Sydney’s West with the new airport.