Victoria
We have seen an increase in buyer enquiry from agents
wanting to purchase rent roll over the last quarter. The reason for this is
that agents are experiencing a decrease in sales income and are willing to purchase
a rent roll that ensures bankable and regular monthly income.
A number of sale of smaller sized rent rolls, or parts of
existing rent rolls have occurred in the last quarter. The reason for this is
agents have sold rent rolls in order to inject capital into their businesses.
Some residential agents have sold their commercial portfolio’s, to concentrate
on core activity, reduce debt.
There haven’t been a
lot of transactions where agencies have sold on a walk in walk out basis. The
business confidence and the state of the Real Estate market haven’t encouraged
this.
We predict that there will be more mergers of agencies over the
next 12 months; so agencies with like businesses can take advantages of the economies
of scale and maintain income whilst reducing duplicated costs.
The multipliers are remaining constant at $3.00- $3.20 in Metropolitan
Melbourne, $3.20-3.35 for quality Inner City rent rolls that have been managed
for a length of time.
The outer suburbs particularly the Western Suburbs f
Melbourne the multipliers have dropped slightly to figures of $2.00-$2.40.
The multipliers in
regional Victoria have maintained their values in the $2.00- $2.50 region.
NSW
We have experienced a huge increase in buyer activity in the
last quarter. The appertite from agents looking to increase and scale up the
size of their rent rolls has been huge. As a generalisation the size of rent
rolls NSW have been smaller than some other States. Buyers now see the value in
a large well run rent roll that provides consistent property management income
and sales leads.
The amount of buyer activity in the Eastern Suburbs, North
Shore and Hills District has resulted in a seller’s market.
The multipliers achieved for good sized well run rent roll
is $3.20-$3.70 in Metropolitan Sydney. Rent rolls have sold in outer suburbs in
the $3.00- $3.20 region. The multipliers achieved in regional areas such as the
Central and northern Coast is in the vicinity of $2.50- $3.00, whereas rent
rolls in the Regional Country areas have sold around $2.40-$2.70.
