[ Print Article ]Articles

MEDIA BURST THE BUBBLE

MEDIA BURST THE BUBBLE
So say the petulant property players.

By a Guest Writer.

In a stunning display of petulant illogic, many agents are blaming the media for the end of the property boom.

And it's not just agents. Others who make fortunes from a buoyant market - such as developers, marketeers and research analysts - are condemning "negative" media as the cause of the downturn.

It's a bit like blaming the television commentators for the intercept pass that cost NSW the first State of Origin match.

It's ironic, too - because an upbeat media was a factor in sustaining a boom that lasted longer than expected. It's only now, amid strong statistical evidence, that the media is acknowledging the boom is dead.

The property industry's response has been typically childish. One Brisbane property consultant pumped out a report headlined "Negative press, again!", with loud condemnation of The Courier-Mail for publishing "inaccurate" data which indicated house prices in Brisbane were falling. He accused the newspaper of running the story only because "nothing sells better than negative press!"

He is not alone. A real estate marketeer, who peddles over-priced apartments and uses his charity work as a marketing tool, has been publishing Internet newsletters decrying media reports which he says are "negative and not factual".

He seeks to balance this with "real facts, not just hearsay" - and does that by presenting data from the consultant (mentioned above) who claims that everything in his local newspaper is inaccurate and negative. "The negative sentiment regularly presented to us in the press together with a lack of understanding of the dynamics of our specific market place is resulting in a significant under-supply of property," he said. Yeah, right.

In a Sydney newspaper, an agent criticises newspapers for publishing articles about low auction clearance rates. It's unclear whether he's complaining because the figures are wrong or because they are correct and he doesn't want them made public.

Agents should be grateful newspapers publish auction data without proper scrutiny. Anyone who takes a decent look will soon discover that clearance rates are much worse than reported.

On a recent weekend, agents claimed a 56% clearance rate for auctions across Melbourne - a claim faithfully reported by many newspapers. The true clearance rate was 39%.

The real estate industry has scant cause to complain about the press. The property sections of most newspapers pander to the wishes of agents, publishing un-edited press release material eulogising auctions, the benefits of advertising and the "essential" role of agents.

Real estate institutes are allowed regular columns in newspapers - a privilege which industry spokesmen like Rowen Kelly (REINSW) and Enzo Raimondo (REIV) abuse with self-serving, talk-up-the-market propaganda.

Agents should get down on their knees and thank the media for its compliant approach to reporting on the property market, rather than criticising them for allowing the occasional glimmer of reality to peep through.

Besides, intelligent agents see benefits in a brutally honest property press. The biggest problem most agents have at present is home owners with boom expectations in a post-boom market.

If sellers knew the truth - that the boom is over and prices are falling - they could price their homes accordingly and avoid selling at a much lower price when the market gets worse.

It's in agents' interests for sellers to be aware that boom-time prices are no longer achievable.

Indeed, honest press reporting is in everyone's best interests. It should be applauded, not derided.

***************************

This article was taken from the Articles page of the Jenman website.

<< Back to Articles

Articles