Legislative Council Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia Legislative Council published Question Time Real Estate Industry REAL ESTATE INDUSTRY The Hon. T.J. STEPHENS Legislative Council REAL ESTATE INDUSTRY The Hon. T.J. STEPHENS (14:59): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about the real estate industry. Leave granted. The Hon. T.J. STEPHENS Legislative Council The Hon. T.J. STEPHENS: It has now been around 12 months since this government's new real estate laws have been in effect. At the time, I spoke on behalf of the opposition with regard to the bill in this council so, naturally, I have taken an interest in how things have been progressing. I have received quite a bit of feedback from agents and consumers alike regarding the enforcement of the prescribed conditions to be read by an auctioneer at residential auctions. The feedback has been that it takes a significant amount of time to go through this process. For instance, in the heatwave that we have just experienced, the process seems drawn out and frustrating for everyone present. This is especially so because consumers intending to bid are given access to forms detailing bidding processes and all the information necessary several days prior to the auction and at least 30 minutes prior at the place of auction. My question is: does the minister stand by this particular decision for auctioneers to be forced to recite prescribed conditions at auction, or will she move to reverse this unnecessary measure with some urgency? The Hon. G.E. GAGO Legislative Council Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (15:01): I thank the honourable member for his important question. Indeed, the real estate industry is to be commended for its transition into and uptake and compliance with the new real estate laws. It has done extremely well, and the Office of Consumer and Business Affairs is out there monitoring auctions, checking advertisements and things like that. Although it has issued a number of warnings and there have been a couple of expiations for breaches, I would like to take this opportunity to say that overall the real estate sector has done extremely well, and I am very pleased with that. I would like to think that at least part of that is attributable to the very good state that our real estate industry is in here in South Australia. We have seen it go through economic challenges over the past year or so, and we have seen the real estate sector in some states in other jurisdictions take a real hit. That did not happen here in South Australia, and I am not naive enough to think that our measures necessarily held our industry buoyant during the difficult times. Nevertheless, our industry is in good shape. We put in some reforms to assist with the integrity of our housing sector, and we found that, although there were some challenges for the sector, nevertheless, compared to other jurisdictions, it did extremely well. We are very pleased about that, because we know that that helps underpin our economic standing. That is a very important part of our economic sustainability. In relation to auctioneering, it is not just that area. There are a couple of other areas as well about which REISA has been in contact with me and which it would like me to have a look at. We agreed to a two year review process; I think that is actually in the legislation, if I recall correctly. If it is not, we are certainly committed to a review. The industry asked me whether I would consider something prior to that. I said I would if it came to me with some real problems and was prepared to work with me in a constructive way. I also told it that, if there were matters that we were able to address prior to the two year review that I believed needed to be dealt with prior to that, I would be happy to look at that. REISA conducted a survey to review its reforms. It has collated that, and I think it has only just started engaging with the agency in relation to the outcome of that review, so I am actually in the throes of looking at where we can make improvements. One should always expect the unexpected and, if there are unforseen outcomes that are creating problems or some sort of detriment, I am certainly prepared to review the issue. So, the agency is currently working with REISA. I understand that auctioneers having to read out the prescribed conditions is one matter that it has raised with us. As I said, I believe we have a very constructive working relationship with the industry, and we will work through those matters to make improvements where possible.