Tuesday, October 19, 2010

Sustainability of the Property Industry

THG and Ashe Morgan Winthrop dusted off the crystal ball this morning to discuss the future of the property industry.

According to presenters, Richard Katter and Dan Holden, one of the most significant outcomes from the Global Financial Crisis has been the market’s re-pricing of risk. They identified the means by which property market participants can manage this in regard to changing market demands and finance.

Both Dan and Richard spoke about the importance of doing your homework, particularly on the types of dwellings and price points offered to market.
Sustainability of the Industry. In particular, Richard's analysis of average incomes and the affect this has on purchasing power, compared to the price points of stock in the market shows a large disconnect between the price points in demand and the price points being supplied. This trend applies across Brisbane and the Gold Coast. According to Richard, detailed analysis is vital for the future sustainability of our industry.

Check out the chart which demonstrates this disconnect, particularly in the Brisbane market. The red lines show purchaser distribution (demand) and the blue lines are market distribution (supply)and indicate the over supply at the top end of the market.

If you want to know more about what was discussed, contact Richard at richardk@thg.com.au.

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