Our Backyard – Anglesea

There is talk this week that the property market is flattening out after recent retail spends are trending downwards, also the advertising dollar trending this way too. Clearance rates at Auction down compared to this time last year! With all of this information going against the grain for me and the feel I’m getting from the market and buyers, I decided to investigate further as usually we get fed  the fear factor during the winter months rather than spring when everything traditionally trends upwards heading into the summer and peak retail prior to Christmas / New year.

  • Auction clearance rates last week were at 74% or 960 sales compared with 999 this time last year and 81% (source REIV)
  • Deloitte reports that whilst retail is slightly down, its actually up compared with this time last year (source Deloitte)
  • Advertising spends in specific areas are experiencing excellent growth and Australia still in the top 5 internationally, spend per capita. Digital a strong performer for all mediums (source BandT)

See below excerpt from Richard McGowan – b&t.

Australian advertising revenue is expected to grow by 4.7 per cent this year to top $16 billion, according to IPG Mediabrands’ media intelligence and investment division, Magna.

Digital advertising is expected to grow by 13.5 per cent in 2017 to reach $8.4 billion, a strong follow-up to last year’s 24 per cent digital growth.

“The continued strength of Australian digital spend remains impressive given the almost total penetration of internet access and the already high 53 per cent share of digital as a portion of total campaign budgets,” Victor Corones, managing director of Magna Australia, said.

Within digital, the strongest growth comes from video, with 38 per cent growth expected this year to reach $1 billion.

Social media is expected to have the next highest growth at 20 per cent in 2017. This will stem from 26 per cent growth in mobile social advertising spends, but a stagnation in desktop social-media engagement, which Magna expects to decline in the coming years.

The Asia Pacific (APAC) advertising market will grow by 5.6 per cent in 2017 to US$156 billion – marginally ahead of Magna’s previous forecast of 5.4 per cent.

APAC maintains its position as the second largest region for advertising spend, behind North America (US$196 billion). Growth is expected to slow slightly next year to 5.1 per cent.

This year, APAC will see digital becoming the largest share of advertising budgets, representing 37.8 per cent of spend (or US$59 billion) – slightly higher than television’s 37.7 per cent of budgets.

TV will still grow in APAC by 2.2 per cent this year to US$59 billion and will continue to grow through 2021 despite gradually losing share to digital media.

Print media in APAC will struggle in 2017, with newspaper and magazine advertising sales declining significantly at by 7 per cent and 9 per cent respectively. Radio and out of home will still see low to medium single-digit growth, but are also losing share as a percentage of the total advertising pie.

Global advertising revenues are projected to grow by 3.7 per cent in 2017 to US$504 billion. This is in line with Magna’s previous forecast of 3.6 per cent in December last year.

The 3.7 per cent growth rate represents a noticeable slowdown compared to 2016, which achieved record 5.9 per cent growth. This was expected by Magna, as cyclical events such as global sports tournaments (Olympics, UEFA Champions League, Copa America) and the US elections contributed by approximately US$5 billion dollars to 2016 advertising revenues.

Excluding cyclical events, 2016 growth would be 4.9 per cent, and 2017 growth would be 4.7 per cent. The slowdown is thus very moderate and in fact it is mostly concentrated in two markets – the US and the UK.

 

https://www2.deloitte.com/au/en/pages/media-releases/articles/retail-forecasts-120917.html

https://reiv.com.au/market-insights

http://www.bandt.com.au

So what does all this mean! Well from our perspective buyers are continuing to build strong relationships with us and taking advantage of arranging private inspections and negotiate quickly to secure property. We were thrilled to sell 24A Tenth Avenue, Point Roadknight within 3 weeks of being on the market and in the advertised price range. The coastal market still representing excellent value based on Melbourne market performance – with the average sale price being $800K.

Have a great weekend, look forward to seeing you at the opens & private appointments.

Regards

Kellie Saddington

Branch Manager

 

 

 

 

 

SOLD

24A TENTH AVENUE, ANGLESEA  

NEW LISTING

11 GEORGE STREET, ANGLESEA – Private Sale $885K

OPEN FOR INSPECTIONS

14 Melba Parade, Anglesea   1.30 – 2.00pm   Saturday 21st & Sunday 22nd October

11 George Street, Anglesea   2.30 – 3.00pm Saturday 21st & Sunday 22nd October

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