Recently, residential vacancy hit a 16-year low due to poor investor activity over the last five years. According to the Property Investment Professionals of Australia (PIPA), a non-profit association of industry practitioners, this critical lack of rental properties must be addressed with key policy by whoever wins the upcoming Federal Election.
Nicola McDougall of PIPA
Since 2017, the nationwide lending restrictions with fewer interest-only loans and higher interest rates prevented investors from purchasing. Nicola McDougall, PIPA chair, said while investors made a return to the market last year, the effect of their absence for years before that is still felt by tenants.
“At the same time, asking rents were mainly benign, so the combination of higher mortgage costs together with flat-lining rents were also an impediment to the investor market.”
CoreLogic analysis found that investors were slightly up from the record low (32.6% of mortgage demand by value in January 2022 from 22.9%), but still below the decade average.
Source: ABS lending indicators Jan 2022 and CoreLogic
As of February 2022, the national residential property rental vacancy rate fell to 1.2%. SQM research shows the rate to be less than 1% in Brisbane, Adelaide and Perth while asking rents there are increasing almost 13-to-20%. Available rental properties plunged in the Melbourne and Sydney CBDs as well, but capital city asking rents have soared 9.4% over the year to March.
PIPA say political parties must develop a significant and sustainable policy to remedy this in the vein of the National Rental Affordability Scheme which was unfortunately scrapped after only a few years. A system that encourages private and public sectors to work collaboratively together will increase rental supply and improve affordability for tenants.
“With overseas migration set to soar over coming years, where are these new Aussies going to live if we don’t even have enough rental properties to house our current population?” asks Nicola.
Trade fair season is well and truly here, for those of us in the gift and homewares industry. Events like Sydney Gift Fair, at Sydney Olympic Park from from 24 to 27 February, are the ideal place for buyers and designers to find new stock and suppliers, meet the people behind the brands they love and see what’s new for the year ahead. But they are big events and, if you want to avoid getting to the end of the day with blistered feet, faint from hunger and with a messy bag of disorganised leaflets and business cards, unable to remember what you saw and at whose stand, pay attention to the following tips from those who have been there and done it!
Retailer Jayde Leeder from Little Paper Lane, says: “It’s a good idea to have a bit of a plan. All the fairs send out a catalogue of all the suppliers and they’re on their websites, so it’s essential to go in having an idea of who and what you want to see. Pre-registration can help with the lines at the door.
“One thing I see so often is people walking around in really high heels. They’re going to kill at the end of one day! My Nikes get a workout! Make sure you use the fair’s hashtags so you can keep an eye on the fair. It’s a good way to find suppliers’ social media accounts and keep in the loop online.”
Zoe Bristow, owner of The Print Emporium, has plenty of genius advice for buyers:
Get a good night’s rest the night before the shows.
Eat a good breakfast before you arrive.
Coffee lines can be huge in the mornings at the venue, so if you spot a cafe near the entrance or outside it can be wise to buy your coffee hit there.
Pack a few pens, ideally one that has a clip to attach to your lanyard around your neck for easy access.
Bring a notebook & stapler, and write notes on the brochure or cards you receive too.
Bring a mobile phone portable battery charger, a bottle of water, a snack or two and plenty of business cards.
Wear a comfortable handbag or shoulder bag. You will receive a carry bag but make sure your own handbag has a long strap too.
Take a photo of the stand’s business card with your phone to remind you, as it makes things super easy to find later.
Take a few breaks during the day so you don’t become exhausted.
When back at your accommodation each day, whilst things are fresh in your mind, try and file away the key brands you are interested in, so you don’t get confused later.
Network! Trade shows are a great opportunity to meet fellow industry buyers and exhibitors.
Interior stylist Emma Blomfield, says: “Remember to eat! I forget this one sometimes and wonder why I feel faint halfway round the exhibition hall. Don’t hog the suppliers’ time. They are there to wheel and deal with loads of important people; if your conversation could be had with them over the phone or email at a later date, pop your head in to say hi and let them know you’ll follow up with them later.”
Sydney Gift Fair is presented by leading industry body the Australian Gift & Homewares Association (AGHA). Located centrally in Sydney’s retail heartland at Sydney Olympic Park, it is easy to get to AGHA Sydney Gift Fair. AGHA are providing free shuttles and free P5 parking. Simply start each day at AGHA Sydney Gift Fair and take your P5 parking ticket and entry badge to the Transport Hub in Hall 3 between 11am and 3pm to validate your parking.
The contestants have some awkward conversations at Bang Bang after the dobbing incident!
The big dob and a $10k reward
So Jason dobbed on Josh and Elyse for having a gas stovetop too close to the Caesarstone splashback which didn’t meet code. Not only were they told they had to replace it with induction, the judges took half a point each off Josh and Elyse, bringing their score equal first with Jason and Sarah. And then Scotty awarded the underdogs $10,000 for coming joint first. Dobbing really paid off for Jason and Sarah! But AWKWARD!
The buyers’ advocates don’t hold back
Then it got worse, with buyers’ advocates Greville Pabst, Frank Valentic and Nicole Jacobs doing a tour of the houses and giving their opinions and they didn’t hold back, ruffling more than a few feathers. While most of the feedback was positive, some of it was definitely not! Let’s recap!
Nicole said Jason and Sarah needed to pick up the luxury in their master suite. Greville said they’d missed the mark and it was almost like the downstairs was done by someone else.
Nicole thought Hannah and Clint’s three fridges would be bad for the power bill. Greville also noted the too-small fridge.
Greville would have preferred Ronnie and Georgia’s formal loungeroom to be a home office and he didn’t think the hidden TV had been well executed.
Then it came to Sticks and Wombat. Neale Whitaker may have called their aesthetic ‘raw luxury’ but the buyers’ advocates had more than a few issues with it. Greville thought they’d missed the mark and had an identity crisis. He said there were too many contrasting styles, it was too blokey and they needed to make some urgent changes and soften it to appeal to more buyers. Nicole thought the bedroom was a little confused with several periods in one room. Frank said the bathroom was probably too big, making the second living space too small. Nicole said the buyers would either love or hate the kitchen and that she probably didn’t have a buyer for their house. Greville said he didn’t want to show his buyers their house at all. But he did say it was redeemable.
And Josh and Elyse? No negatives at all, it seems!
Personally, I maintain that the buyers’ advocates have a really useful role to play on the show and it looks like Sticks and Wombat are going to take their feedback on board, hopefully to their advantage.
Greville Pabst
Here, Greville (CEO and Executive Chairman of WBP Group) recaps his opinions on each house from last night…
This season of The Block we are seeing beautiful period homes being renovated in Elsternwick. As you all know, I have a passion for established housing, not just because of it aesthetics; it time and time again returns greater capital growth to my buyers.
It has been a long time since we have seen houses being renovated on The Block, which makes this season extra exciting. Traditionally, period houses have high ceilings, wide hallways and beautiful cornicing detail. Seeing these features brought back to life again in an area with many heritage listed homes is really inspiring for the home renovator.
The Elsternwick area is quickly becoming more popular and we have lately seen many people move to the are from neighbouring suburb, Elwood, due to house prices having a lower asking fee of approximately 10 per cent for a larger block of land.
The Block houses are perfectly located just a short walk to two shopping strips, Glen Huntly Road and Glen Eira Road, where you will find two of Melbourne’s best restaurants, Attica and Bang Bang. The proximity to cafes, shops, the Ripponlea Gardens and public transport will increase the value of the properties.
There are good schools in close proximity, including Caulfield Grammer and Wesley Collage, which makes Elsternwick a good investment area for families.
Last night on the buyer’s jury, the contestants received my true opinion on the renovations completed to date with the aim to help them reinvigorate these old houses — reaching their full potential. My job is to advise on exactly what a buyer expects to see in a property of this calibre; my eye is scanning the finishes, layout and quality of materials. Everything needs to be perfect to get the big dollars on auction day.
Ultimately, Ronnie and Georgia scored best from the judges (by half a point!) and won $10,000.
House 1 – Jason and Sarah
Kitchens sell homes and in my opinion Jason and Sarah nailed it in this room. They have incorporated beautiful integrated appliances, which creates a sleek modern look that many buyers are looking for. I also love the mix of materials in their kitchen island where they incorporated both stone and natural materials like timber.
Walking up the stairs to their master bedroom, unfortunately this luxe feeling disappeared. The master suite was not well executed and it felt like it was done by someone else as it did not match with the high-end finishes in their downstairs area, but if they go through this room again, it can easily be fixed with a better choice of materials to match the downstairs rooms.
House 2 – Hannah and Clint
This couple has gone for a luxe feel that I think works quite well throughout their entire house. They were the only couple who created a division between the dining and living rooms, which is a trend that is currently occurring in modern design.
The main thing that I believe this couple will have to replace straight away is the tiny fridge and freezer they have chosen in their kitchen. The house has five bedrooms so this tiny fridge is a disaster and it will not accommodate the people living in this house.
House 3 – Ronnie and Georgia
Lighting is critical these days, especially in large homes with an open floor plan. Dividing up lights can make an enormous difference in creating mood from zone to zone, and Ronnie and Georgia managed to do this really well in their kitchen, living and dining area. This is one large space that has a nice flow and is perfect for a family, but they have still managed to make it feel like three separate areas each with a unique functionality and feel. The concrete island is a huge trend at the moment and they have created a modern kitchen that not only is beautiful but also practical.
I was not so impressed with their second living area, the idea in theory is good, but the concealed TV and theatre room has not been executed very well. To be honest, this property would be a more attractive listing if this space was created to be a home office, because apart from the small alcove next to the kitchen, there is no space to work from home.
House 4 – Sticks and Wombat
Walking through this house I just felt that they are going through a bit of an identity crisis and have still not figured out their own style 100 percent, nor who their potential buyer might be. At the moment, there are too many contrasting styles, including Japanese, contemporary and masculine – it’s a real blokes’ house.
Looking at the rooms they have finished so far, I am worried for the guys. Their place has tons of potential as all their finishes are excellent, but they need to simplify the overall flow and incorporate some softer elements in order to make it more presentable. The foundations are there and if they take the feedback on board I will change my view on taking my buyers through.
House 5 – Josh and Elyse
This is the only couple who have a proper study in their house, demonstrating a deep understanding of potential buyer needs. A home office trumps an extra living area any day in today’s market, as many professionals tends to work from home a lot.
I also really enjoyed the beautifully executed kitchen, living and dining area that has a really nice flow and luxe feel. The only thing that could have made this space a tiny bit better is if they would have chosen an integrated fridge and freezer instead of a freestanding one that can come across as a bit bulky.
I am more excited than ever to see how this season plays out, with the houses being over 300sqm, the kitchen alone being about 20sqm, they are one of the best in The Block history.
It will be very interesting to see how the contestants hard work pays off on auction day. Many rooms are yet to be revealed and we all know that it is not over until all the tools are down.
Last month, Shelley Boyd, founding director of leading Australian interiors wholesaler Boyd Blue, ventured to North India for her annual 10-day trip with employees Georgia Anderson and Elizabeth Hemlin. They visited the artisans and factories producing the handcrafted exclusive collections for Shelley’s own Boyd brand and to source customised hand-knotted rugs and product for Boyd’s 2016 catalogue. They also managed to squeeze in a trip to the majestic Amber Fort and a celebration with their local friends at the exquisite Bar Palladio.
In Shelley’s own words:
“The buying trips to India are always deeply inspiring and moving and I am, and have been for many years, passionately in love with the place. It is such a wonderful and diverse destination, filled with colour, magic and greatly talented craftsman. Whilst exhilarating, it can also be a frightening and physically demanding experience. The days are long with vast distances travelled on pretty horrible roads with drivers who have a different interpretation of “safe” to those of us in the western world. Couple this with sometimes uncomfortable conditions and the chance of a tummy upset and you can see why the journey is always what you would call up and down.
That said, the spirit of the Indian people and their constant optimism in the face of adversity certainly puts things into perspective.
Our trip this time was primarily to source traditional rug makers for Boyd’s new hand-knotted range, to view prototypes for some very special product for our 2016 catalogue, and to catch up with our key artisans, some of whom we have been working with for close to a decade.
As part of this process, we based ourselves in Jaipur and visited a handicrafts trade fair to help source new handmade product for our collections. This involved hours of trawling through stands, looking at product and talking to craftsmen. Some of what we saw was exquisite and some was what I would describe as less than inspiring! As part of this visit I have been able to hand pick unique and globally themed pieces for our clients, which will be available in our 2016 catalogue. We are very excited about what we found; gorgeous new hurricanes in glass, leather and rope, nautical accessories and fabulous timber and glass pendants.
While staying in Jaipur, we visited my all time favourite entertainment spot, Bar Palladio, with our dear Indian friends. The interior decor here reflects serious style and the attention to detail is breathtaking. The finely hand painted murals and enormous hand carved marble bar sit alongside an absolutely beautiful garden setting, and it was the perfect place to say thank you to our valued Indian suppliers. Catching up with the artisans we have worked with for so many years in Jaipur and continuing to nurture these relationships really makes my heart sing as we have worked long and hard to find the best India has to offer and are so grateful for these connections. On a previous trip, I had the privilege of sharing a fine meal with one of my longest standing suppliers in the private dining room of the Amber Fort. I was pretty thrilled to learn the last guest to entertained in this private room before me was Richard Gere!
A key highlight of this journey was the discovery of a wonderful group of craftsman in Bhadohi, a small rug-making village two hours out of Varanasi. The rugs are of superior quality and their makers use ancient techniques. We were so moved watching them cycle past us on their push bikes towing wagons filled with absolutely beautiful rugs. The Boyd Blue team and I are really excited to bring these rugs to Australia exclusively for our clients and are also really excited about what will be on offer through our 2016 catalogue.
All items will be available through interior designers and as one off retail purchases from our showrooms throughout Australia for Interiors Addict readers. We look forward to sharing this trip and others with you via Interiors Addict and our Facebook and Instagram.”
If you’d like the opportunity to buy from Boyd Blue’s latest collection, usually reserved for trade and wholesale customers only, please call your closest showroom and mention Interiors Addict:
With the intense time pressure, the late nights and the limited funds, I can’t be the only one who wonders how The Block’s contestants can actually create high-end properties. Especially when you add to the mix that this series they’re renovating in the wealthy suburb of South Yarra… well it truly makes me beg the question: are these townhouses even going to sell?!
But rather than speculate I decided to go straight to the source and chatted to one of The Block Triple Threat’s newest faces, buyer’s advocate Greville Pabst. “It was my perception at first that buyers may be apprehensive about the quality, but the contestants do go back and fix all the abnormalities. There are really two aspects to The Block, there’s the television reality aspect and then there’s the presentation for marketing and sale. The contestants have a certain amount of time to prepare for reveal but after the feedback is given, they fix any issues.”
Greville, with buyer’s advocates Nicole and Frank
Greville also believes this series’ auctions will have happier endings than years past, thanks to the properties being so unique (four-level townhouses with double garages and cellars) and the involvement of himself and fellow buyer’s advocates Frank Valentic and Nicole Jacobs. “The contestants are really valuing our feedback and taking it on board. A classic example is in Josh and Charlotte’s bathroom, I walked in and said ‘Where’s the ventilation?’ and Josh immediately took it on board and said ‘Yes, I’m going to put it in!’.”
And Greville should be listened to! With 30 years in the property business, he is the CEO of WBP Property, one of Australia’s largest property valuation companies. He also frequents ABC Radio as a property expert on their Saturday Morning program and for the last eight years, has written a property column in Melbourne’s Herald Sun. Television, however, is a new realm for Greville, and he’s finding out all the tricks of the trade!
“What’s been really interesting is how much footage they take. It normally takes about five hours to shoot just one reveal! They film so much that at the end of the day, none of us know which part they’re going to use. So the fun thing is you get to see how they slice and dice that particular day. It’s been interesting watching it and so far, I’m really happy.”
[contextly_sidebar id=”NSuhGRySgSADHbF8ugjyOufuTd6k5rRO”]Greville is also enjoying the experience for the fact he gets to share his learnings with the public, believing he can help give buyers the right advice when it comes to making such a big investment. As after all, though many of The Block’s rooms are beautiful, one shouldn’t go buying a property based off cushions and pendants!
“I really liked being on the show as we’re giving a different perspective to the interior designer judges. They’re looking at the furnishings and all those other things, but as a buyer’s advocate — in most cases — when you buy a property, all those dressings aren’t included. So while we look at them and see they look nice, they really don’t come into play when we are making a buyer’s decision. Rather, it’s the floor plan, orientation, light, aspect, size and quality of renovation.”
Buyer’s agents are becoming increasingly popular. After all, who wouldn’t want someone who speaks the language of inspections, appraisals, contracts, settlements and price negotiations to do your bidding?
Kristy Smith, owner of new boutique buyer’s agency, Agility Property, does this and more, also providing related services such as interior design and property management. Believing buyers typically represent themselves with limited market knowledge — while sellers are represented by an agent — Kristy thinks it’s time for a level playing field.
“Hiring a buyer’s agent gives you a balance of power during research and negotiation,” explains Kristy. “You have the best information, knowledge and experience on hand.”
Kristy also plans to give this power to her clients through a new app set to launch in March. “Some buyers want to stay involved in the process but just need guidance. So the aim of the app is to simplify and enhance their experience, and it’s obviously available anywhere and anytime of day.”
A whopping 88% of property purchases were handled by a professional buyer’s agent in the US according to a 2013 study undertaken by American National Association of Realtors and according to Kirsty the trend will continue to rise in Australia too.
Melbourne is famous for its incredible hidden laneways which are full of vibrancy, colour and activity. It comes as no surprise that it is home to some of the most amazing lifestyle brands in the Australian market; and Melbourne Home & Giving Fair is where these best-selling brands come together to put on an energetic show for retail buyers.
General Eclectic, Stand E2318, Exhibition Pavilion (MSG)
This August, it’s all about bringing together the incredible products that reflect the latest styles and inspiring trends– with a Melbourne twist. The show floor at Home & Giving Fair will become a city grid, replicating the diversity of retail stores found everywhere from Chapel Street in South Yarra, to Brunswick street in Fitzroy and beyond.
Darcy & Duke, Stand E2718, Exhibition Pavilion (MSG)
At Home & Giving Fair, retail buyers can expect a line-up of over 470 wholesalers, including well-known international brands such as Bodum, Royal Selangor and Le Creuset, along with 70+ brand new exhibitors and thousands of new products. Exhibition Pavilion at Melbourne Showgrounds will host an Australian first, a new Fair Trade Zone, where retail buyers can find a collective of over 20 exhibitors showcasing beautiful product with an ethical edge.
Look out for the ‘street art walls’ that signpost the Home & Giving Fair’s creative alleyways at Door 7 at the MCEC and Avenue Pavilion at the MSG. Sign your name or company, strike a pose and share your snap by hashtagging #homeandgiving for your chance to win $200 South Wharf Promenade Dining Voucher.
Holiday Trading & Co, Stand A1001, Avenue Pavilion (MSG)
It’s less than a month away from the biggest retail buying cycle in Australia so don’t miss the largest gift and homewares trade event on the calendar.Melbourne Home & Giving Fair is trade only, and runs from 2-6 August, at both the Melbourne Convention & Exhibition Centre and the Melbourne Showgrounds. For more information and to register today, visit their website.
