Archive for December, 2011

2011 has been a year of spectacular growth for the Ray White Group. We have welcomed a new office every 10 working days; culminating in 20 new businesses joining and starting up across the country. We have also effectively had 10 new business owners purchase existing Ray White offices.

Our Group stands at 131 offices with just over 1,180 salespeople, 220 property managers and 145 administrators. This year our sales turnover increased by 12%, which saw us transact $3.895 billion in property sales. Our property management portfolio has grown beyond 14,000 and our market share, particularly in the last quarter, has shown good growth across many of the areas we trade.

The number of sales that will occur within the industry will be 58,000 for the year and will be in line with 2010. The amount of property that has been marketed for sale has dropped by 10% during the year. This has effectively resulted in lower days on market and price increases across most centres throughout New Zealand. Productivity levels for our top 20 businesses increased by 23.8%. There was one interest rate reduction of .5% in March. The official cash interest rate has remained at 2.5% during 2011 and is expected to remain at the same level throughout 2012.

During the year we remained committed to the three pillars of our business growth, being marketing, personal skills and growth. Our marketing platform has seen us redesign our online presence and we have applied a number of superior applications which sees us continue to lead the industry.  Personal websites were also introduced during the year.  We have rebranded our marketing through the media to present further enhanced property presentation. This is now fully integrated with all publishers.

The growth of the company has been evident with the number of new offices that have joined and there have also been several high profile salespeople join Ray White from other companies.

Within this year’s Christmas message we make reference to the significant events that occurred in 2011 throughout New Zealand. To our people and their communities who have been affected by these events, we pay tribute to you.

Our Group will finish the 2011 year in very good shape. The industry continues to polarise.  The significant reinvestment that is required to be a leader in this market is our commitment. 2012 will be a year of continued growth as we enable our plan for genuine leadership.

On behalf of the Ray White corporate team and the White Family, we wish all of our members and their families a relaxed Christmas break and look forward to a successful 2012.

.

The real estate market continues to show improved signs for all sectors within property sales on the strength of the continued low Official Cash Rate of 2.5%, steady immigration numbers coming toNew Zealand linked with the recent election that saw the National Party return to government with an increased majority.

Prices have continued to firm, particularly across Auckland where the average sale price has lifted during the past two months and is now $475,000 which is a lift since the beginning of the year of just under 4%. The numbers of sales also across Auckland have remained consistent during the past three months to be just below 2,000 per month and we expect this trend to continue throughout the final months of 2011 and during the first quarter of 2012.  What has been of interest is the increasing amount of property that has been marketed by auction, which is at a record high of 26.4%. Across New Zealand the sales numbers have also remained just above 5,000 per month and the average sale price has increased from $340,000 at the beginning of 2011 to $359,000 in October 2011.

It is now forecast that the Official Cash Rate will remain at 2.5% at least until September 2012. This will continue to give confidence to first home buyers and investors and this in turn will keep the market remaining active in the second and third home buyer areas.

The recent capital valuations received by property owners throughout Auckland are a definite reflection of the continued activity that has occurred in certain areas of Auckland and also those properties within the $500,000 to $1 million price bracket.

The outlook for property prices over the next period remains strong; with lower days on market and an active buyer pool this should continue to drive sales across all markets.

.