Technology and its impact on the real estate industry

 

I was recently invited to deliver a lecture to students at the Department of Property, University of Auckland Business School on the impact of technology in the real estate process. I thought having delivered the lecture I would share the content of the lecture and the slides as a synopsis of my thinking.

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Price indications - agents cannot mislead

This tweet I saw today from the industry's regulatory body is a very timely reminder of the duty of professional care that agents need to provide to buyers around not misleading or withholding information on price expectation

 

Thinking of objecting to your Capital Value?

With hundred's of thousands of Auckland homeowners receiving revised re-valuations upon which the 2015/2016 rates will be based, I am sure there will be many wondering if they should object. Whilst that decision is for each person to decide, I thought I would share my thoughts and my approach to my objection.

 

New Capital Value's demonstrate an archaic system

It's an embarrassment that the functioning of our largest Council collapses (online access anyway) when the new CV's are released. This demonstration of technical failure is a reflection of a deeper failure with the whole CV process which clearly needs to be seen as being archaic!

 

A property website or 'The world's most trusted and vibrant home-related marketplace'? 

Property website or as they are more often called Property Portals are far more than replacements for print media for the real estate industry and the operators of these portals recognise it more and more - their future is inextricably linked to the real estate community in a mutually beneficial ecosystem.

 

Technology and its impact on the real estate industry

I was recently invited to deliver a lecture to students at the Department of Property, University of Auckland Business School on the impact of technology in the real estate process. I thought having delivered the lecture I would share the content of the lecture and the slides as a synopsis of my thinking.

 

The Auckland property market shows little sign of life

The latest data of sales from Barfoot & Thompson for October was foreshadowed as highlighting a recovery and return to normal after the election. Far from it, the trend in terms of property sales continues downward, 22% down from October last year. In the lowest price segment below $400,000 sales continue to tumble

 

Could The Block series 3 be a leap too far?

I know the massive appeal of The Block NZ - it is a TV hit. However from a real estate perspective I wonder if the choice and scale of this year's properties might be a step too far. Based on data around potential buyer demand at the price point expectations of the agents and vendors I fear that the final live TV auctions may not turn out to be the success of previous series. Having said that either way it will make captivating watching with huge ratings!

 

Auckland property - a price too far!

The weekend opinion article in the Dominion Post by Duncan Garner prompted me to respond to some of the suppositions he raises about the Auckland property market and the price inflation. Naturally I hold somewhat different views regarding the root cause - in my mind it has less to do with supply constraints and more to do with finance.

 

The industry 'circles the wagons' around Realestate.co.nz

The past year has seen a significant act of reinforcement by the industry to support their 'industry owned site' - some customers have taken to media to rally the cause. In my view the very fundamental issue is questionable - agents have nothing to fear from Trade Me Property, except fear itself!

 

Our fixation of property as an investment is not healthy

The headline again made for great eye-candy "Investors sells worth over $40m" - only bought for $630,000. The picture is distorted, for whilst the investment is a very high return it is not a judge of the likely result of property or land investment. Our investments can reap better and more predictable and sustainable returns like the planned IPO of Orion Health a company started in the same year as the investor bought that bit of land - the difference is that the IPO will value Orion at close to $800m.

 

Sale price premium cannot be claimed by advertising alone

Having highlighted the unbelievable claim last week that the Herald Homes advertising contributed to securing a 20% premium sale price I received details back from NZ Herald as to the research.
It is my belief that the research is a classic case of confusing correlation with causation. I have further undertaken my own research to provide an alternative hypothesis that in my mind dispels the claim by Herald Homes.
I therefore judge that the NZ Herald advertising claim is without foundation and therefore fundamentally misleading.

 

One property does not a market make!

The sale of the Grey Lynn Villa for over $3m is an outlier and tell us nothing about the Auckland property market, what it more importantly tells us is more about our economic future and that of NZ for the coming decade

 

The Auckland Property Market is Cooling

The analysis of the key metrics from the Auckland property market for September bolstered by the trend of the first 9 months of the year paint a very clear picture that shows that the Auckland market is cooling

 

Same data/ different story

Newspapers continue to print articles on the property market that are simply cut and pasted from press releases. The latest example based on Barfoot & Thompson September data motivated me to re-write the opening paragraphs based on the core data to present a very different story - one I believe is factually more accurate and based on the principle that "bad news sells papers" should be adopted by the paper!

 

 

 

 

 

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