The Management Rights market seems to be at a crossroads of late. We’re seeing record levels of visitors coming to the site looking at management rights – July saw 38,000 visits and June (which is a day shorter of course) saw 37,000 – both months performing above our long-term average of around 35,000 visits.
Despite this we logged 1,334 sales leads for July whereas June saw 1,474 sales leads (ie: telephone calls and emails) off a long-term average of 1500 enquiries a month. Traffic is trending up, but engagement is trending down at the moment, to me that signals a market sentiment that is curious, but cautious. Why? Cost of living pressures, inflation, interest rates, and regulatory uncertainty would all be factors that are doing the market no favours right now. It’s nothing catastrophic, but it is certainly not as amazing as the status quo: A transitional phase in the market cycle.
This should, by no means, deter buys, however. To quote Warren Buffet: Be greedy when others are fearful. We saw 800 Management Rights on the market for the first time since Covid began 4 years ago, so there is certainly an abundance of excellent stock available at the moment. It’s a buyer’s market, and with talk of interest rates potentially dropping soon, the “housing crisis” seemingly easing (hopefully seeing an end to letting pool shrinkage through first home buyers snapping up rentals to live in), I think it’s a perfect time to get ahead of the curve and profit. Get amongst it. Happy shopping!
Nick Buick holds as Masters degree in Business Administration and is the founder and CEO of TheOnsiteManager.com.au