Sydney, Australia (PressExposure) March 15, 2010 -- The executive rental market, which took a battering during the Global Financial Crisis, is slowly showing signs of recovery.
Michael Conolly, McGrath Estate Agents' newly appointed Head of Network Property Management, says the supply and demand equation has begun to swing back in favour of owners holding top end property."The GFC forced many owners of executive style houses and apartments to rent their properties in a bid to hold on to their assets," says Mr. Conolly.
"This increased stock levels during 2009 and unfortunately coincided with many corporations down-sizing and cutting back their Australian operations."So with a big increase in supply and an equivalent decrease in demand, properties in the over $1500 per week bracket either remained vacant for long periods or had their rents discounted by 20 per cent or more." With the return of confidence in the economy there is once again a robust sales market for properties over $1.5 million, reducing the rental pool.
"Australia's standout economic performance has resulted in corporations beginning to hire again and coupled with a drop in supply we are again seeing upward pressure on executive rental prices." Announcing Mr. Conolly's appointment, McGrath Chief Operating Officer Geoff Lucas, says the new role will ensure the company's property management business is consistent with the personalised service that is the hallmark of the sales operations.
"We are investing in further growth to raise the benchmark for property management in the same way that we have with the sales division," says Mr. Lucas. "Michael will fulfill a strategic role in developing McGrath's vision for personalised, customer-focused service delivery through the expanding franchise network and company owned offices."
Mr. Conolly, a licensed real estate agent with more than 20 years experience in property and business management, is no stranger to McGrath. He was General Manager of McGrath Property Management for four years from 2001 to 2005 during which time he almost doubled the number of properties under management.
"It is a bit like coming home," says Mr. Conolly. "I'm well versed in the McGrath ethos of growth through superior customer service and developing client loyalty. "My role will focus on reinforcing those key principles as well as coaching and consulting with our franchise partners, with an emphasis on growth, maximising productivity, consistency of process and delivering outstanding customer service."
Mr. Conolly predicts 2010 will be a positive year for property investment and not just at the top end. "We have a combination of relatively low interest rates, a definite shortage of rental stocks, high yields and continuing population growth which is already beginning to lure back property investors.
"However with banks still cautious in their lending, and many investors wary of over-commitment there is a more sober approach to property investment."Investors undertaking proper research and focusing on future capital growth will benefit over the coming years. You must buy investment properties with your head and be guided by what a tenant would value in the property - proximity to lifestyle activities, the workplace and transport are always key.
"Absolutely critical to protecting that investment and maximising the return is having it managed by a professional property management company."
FIVE TIPS FOR A SOUND INVESTMENT
1. Proximity to lifestyle, work and transport
2. Look for areas with new infrastructure underway
3. Car parking if the property is close to the CBD
4. Opt for capital gain over yield
5. Research property movements over the past five years.