Once upon a time, you only read about the blue ribbon suburbs when the topic of conversation was capital appreciation. Today you need to be a modern day Matthew Flinders to follow the path of investment in real estate. No longer is it ‘us versus them’. These days it is the ‘penny dreadfuls’ that are stealing all the attention as investors ‘go west’ in the hunt for return on investment. Median home prices are returning enormous capital appreciation with figures just released last week. Those who discovered Saddington Street, St Marys identified a 68.8 % increase in capital appreciation in just twelve months. If you purchased a home in this street in 2001 you would more than likely have paid $93,000 and twelve months later it was valued at approximately $157,000. It should also be noted that television is greatly assisting our industry. The home improvement and property makeover shows are really causing a buzz, as they identify the easy ways to derive greater capital appreciation with only a small capital injection of funds. One day, just one day, those who are hell-bent on trying to destroy the property industry may care for one moment to look at the big picture. Even those who purchased a home in Bourke (struggle) Street, Redfern in 2001 for $360,000 could have sold it twelve months later for $465,000. There is plenty to be said for ‘Keeping up with the Jones’.

The really big news item was the Land Tax story of last week, with the High Court ruling of a flaw in the NSW Government system for collecting Land Tax. I loved this one, which is self explanatory. Information Technology Minister Kim Yeadon, whose portfolio oversees land valuations, denied that the case exposed the system as a ‘rip-off’. Yes Minister, more likely here we have a huge earner that provides the Government annually with $1 billion dollars, and the portfolio is handled by Information Technology!! The judges found that the applied method to derive a valuation was defective, unduly selective and based ‘effectively exclusively’ on four sales. There is still no mention of the fact that the property was never physically inspected. It will be very interesting to see how the Government will get out of this one. The application of value could be argued as fraudulent, and the Premier is seeking legal opinions, which no doubt will be delivered after March 22. What remains to be seen is exactly how much tax has been overcharged. The figure has been estimated at $350 million. The reality of the matter is that if you are going to apply a figure you need to physically inspect the property so that you can carry out due diligence. The way in which land tax is applied is definitely not, in my opinion, democratic, actually far from it. It has now been conclusively proved that an applied unimproved capital value, has no bearing on the actual value of a parcel of land. It is merely the vehicle that best demonstrates how a Government can attain a lucrative tax, the unimproved capital value is applied by a data entry clerk at a computer, wearing a blind fold.

Back to the local market, and I am totally amazed at the home unit market again, which in 2003 is breaking all time records. Here is another interesting bit of information, Marize just sold another unit in ‘Cienna’, which is a Harbour Street unit complex and a new record price has been set. These units were first marketed off the plan in 1998, and occupation took place two years later in 2000. When initially sold the one bedroom units were selling for around $288,000 or $5,760 per square metre. We just sold a one bedroom unit for $391,000 or $7,820 per square metre, and the rent had been averaged out at $350.00 per week. The purchaser is an owner-occupier. Just goes to show how wrong some journalists are when it comes to accurately reporting the market although I must admit that they can be good for our industry as they make us even more determined to prove them wrong, and we have been doing that successfully for the last seven years. Whilst we have quite a few irons in more than a few fires, with the assistance of Lady Luck, we could be posting some very impressive sales in the coming weeks.

While many are comparing clearance rates to this time last year, the sales evidence to date has been very positive, specially with what is happening in the Northern hemisphere. This is not a market where you wait for it to happen. What we have here is a market where you make it happen, and I can assure you that plenty is happening. ‘The optimist says his glass is half full; the pessimist says his glass is half empty. Cheers and clink…^__^

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31.12.02Robert SimeonNo Comments »

All in all, another prosperous property year with the market finishing in a holding pattern, and ever so slowly coming to a grinding halt. Whilst the market did trade well, I don’t believe that it matched the heights of 2001, certainly not at the top end anyway, although for the very first time the property market recorded three $20 million plus sales, which is a first. ‘Altona’, was numero uno with $28 million, ‘Boomerang’ next $20.70 then ‘Finesterre’ at $20 million, smashed the Northern Beaches’ records. The highest sale in Mosman was a Hopetoun Avenue waterfront, which sold for $9.4 million, so the all time record of $15.5 million still remains in our keeping.

In 2002, our market peaked in March/April so congratulations to those who picked that market. For the second year in succession our spring/summer market was dominated by terrorism. Emotionally these events place enormous strains on the property market. On top of that, certain sections of the media have blown the market out of all proportion, even to the extent where the reputable journalists are left mystified at some of the commentary that we read during the course of the year. In nearly every instance the information reported was inaccurate (to be polite), and nothing more than an unprovoked beat-up.

The business sector slowed down significantly enough to see many of the players withdraw from the market during the course of the year. Together with two interest rate hikes, this was enough to remove the zip from our market. Not to mention the agents who completely lost the plot, and applied values that the market simply could not sustain. The real estate industry is changing, and in some instances I still remain unsure if it is for the better. We are seeing that the younger generation is no longer interested in a real estate career, and this can probably be attributed to property values today being so high. Vendors are simply not prepared to place the responsibility of their prized asset in the hands of a rising new star. This is evident across the market.

It could also be said that the major franchisors have lost touch with the market. I would argue that many would have difficulty running a tap! This is clearly evident in their ignorance of the Internet. I remain amazed at the number of prospective purchasers who are scathing about their sites. The same could be said for some of the real estate portals, that still believe site navigation to be a nautical theme, which probably explains why most still fail to post a profit. Having said that, we will launch our new Internet site for our next edition in January, and I love the new look!! We have also spent the last six months developing our own software programmes which when launched, will keep www.rwm.com.au at the forefront of our industry.

One thing that the Internet does require once you become a player, is a willingness to invest plenty of money in the overall development. I will say that once you work it out the benefits far out weigh the negatives. The secret is simply just not to give up!!

Well that is us for now. Thanks everyone for your interest during the course of the year. Our next edition will be in the new format on January 24 2003. Have a very merry Christmas and a safe and healthy New Year. I am off to read a book on Ngapali Beach. Ho Ho Ho… cheers and clink ^__^

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18.12.02Robert SimeonNo Comments »

Whilst many waited anxiously for the Reserve Bank Governor, Ian Macfarlane to sing “Oh come all ye faithful” when he announced the December cash rate targets this week, most were left a little disappointed when it was announced that they would be the same. It was exactly twelve months ago on December 5, 2001 that the Reserve Bank dropped the rates by – 0.25, the cash rate of 4.25 was then the lowest in living memory. The Bank has been busy in 2002 increasing the rate just twice in May then June to the present rate of 4.75 per cent. It is interesting to note that in 2001 we had six rate adjustments, 2000 had four, 1999 had just one as did 1998, 1997 had two and 1996 had three. Since the property market embarked on the marathon trade in 1996 we have seen nineteen adjustments to the cash rates. Some might argue that the bank is playing a game of ‘eeney meeney miney mo’. Given that the Bank does not meet in January, the next meeting will be in February, which is two weeks after the real estate season launch on January 26. My tip, a -.050 announcement.

This week I read with interest a report from the Real Estate Institute of NSW, ‘Property Focus’. Here is an extract. “The strength of the NSW property market continued during the September quarter, 2002. Total residential sales remain at historically high levels. There were 38,442 sales of houses, units and land in NSW during the September quarter 2002. This was only marginally lower than the outcome for the record breaking June quarter and higher than the 35,744 sales recorded a year ago in September 2001″. The December quarter will in all probability paint a completely different picture, the volume of property will remain much the same, and I would think that sales evidence would be the lowest for quite some time. The market overall is struggling coming to terms with drought, fires and terrorism so it will be only a matter of time before ‘ The Pied Piper’ of property, Mr Macfarlane, starts playing a new tune.

The Real Estate industry is set for massive change next year with the introduction of the legislation that so many have been calling for. We are already seeing some agents suffering from the ignominy of their actions. Last week we read in a Sunday newspaper how one agent started bidding in front of everyone in an effort to get the price up… this is a big no no. I was amazed to read that the agency principal stated that “I don’t think this poses any ethical dilemmas. I see no problem with what the agent did”. What next? It is alright to make an honest mistake by confusing my personal cheque account with my Trust Account!! An auction last week in Mosman advertised “Bidding from $1,400,000.” Those in attendance last Saturday, were amazed when the auctioneer called for an opening bid. $1,900,000 was called and then nothing happened, except that it was passed in, so the reserve must be in excess of $2,000,000. There are two things that agents can be assured of in 2002, the new legislation will put an end to this, and if you follow this practise you can expect to see your picture in a weekend tabloid. Already there are quite a few agents up before the Department of Fair Trading, and they are not there in recognition for their excellent services to the industry.

The auctioneers are also included in the new legislation so you can be assured that many agents will be back to ‘auction school’ next year. The positive part is that it will greatly improve the ethics of the industry, the sad part is that it took so long to come to fruition.

Great to see that homes are still being sold despite what you read, this week we sold 3/16 Munro Street, McMahons Point for $2,250,000 and a few other properties are dragging their chains as they near exchange. Many agents are reporting that their properties are moving finally, so the market still continues to trade. This week we took our exchange total in three weeks to nearly $22,000,000. I predicted we would do $30,000,000 before the close of business, so it is back to work we go !! Cheers and clink…^__^

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7.12.02Robert SimeonNo Comments »

Forget the clearance rates, it is now a clearance sale with the Mosman market embroiled in a ‘dash for cash’ as vendors meet the market. After more twists than a whodunit, once again the intrigue of this unique market is forging ahead and post-auction sales are running faster than an English cricket selector. Such is the renewed confidence, previously failed auction properties now have plural purchasers and in many instances it is ‘advantage vendor!!’

With the Mosman market now participating in the greatest stockpile of property that we have ever seen, it was only a matter of time before something had to give way, and thankfully sanity is prevailing. Whilst the market here has been documented as having burst, the Eastern Suburb’s market is performing exceptionally well, so it was only a matter of time till the tide turned. Momentarily, it was a ‘back to basics’ approach and prices now appear to be self-correcting at approximately five to ten per cent from previous price expectations. This figure differs significantly depending on which agent a vendor engaged to conduct the marketing campaign!!

Opinions of value vary quite dramatically from agency to agency, however with some agents suffering from post auction paranoia, their previous exuberance about price expectations is now as consistent as a meteorology forecast. The current market is acknowledging that vendors now don’t have the luxury of safety in purchaser numbers. In most instances, a property may only have one to three interested buyers, and now the experienced agents are coming to the fore.

In order for one to really understand the direction in which the market is going, and how it is performing, is actually quite easy. All you have to do is log onto the agent’s websites and look at the available property listings. If the available property listings are reducing in number then you will see who is actually getting it right, as against those who rely solely on the ‘hope factor’. We are experiencing fantastic Internet interaction at the moment and it is actually the ex-pats who are noticing a reduction in our property numbers. This is prompting quite a few e-mails with a “please explain what happened to this property”.

Quite a few ex-pats have registered for our ‘Ex-pat Christmas House Hunt’ and quite a number of them have already landed on our shores, with the hunt on in earnest to secure a home. We expect over the next few weeks to see our ex-pat sales increase by a staggering ten per cent, so it is great to see the business dynamics working. Take a look at our property menu, to see the current status of all our properties.

Nothing beats a run of property adrenaline in the veins, and it is great to see the Mosman market mounting a successful fight back given the current economic/social circumstances. In years gone by we have witnessed the market cease trading at the end of November, this year I predict it will trade up to December 23. The following properties have been sold this week, 56 Prince Street, Mosman, 37 Wyong Road, Mosman, 19/2 Clifford Street, Mosman, 19 Weemala Road, Northbridge and 9/15 Hampden Avenue, Cremone.

If the property bubble has well and truly burst and the Mosman market is in dire straits, it is quite amazing that within the space of 10 days we have exchanged $19,500,000 in property. By the time you receive your next edition, we envisage that this figure will be just over $30,000,000. I just love it when a plan comes together!!

Cheers and clink ^__^

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30.11.02Robert SimeonNo Comments »

Alerts took on a totally different meaning this week, and it was not the alert that you regularly receive in your mailbox. We much prefer the e-mail alerts, so that is what we will concentrate on as the 2002 property market, has gathered some missing momentum this week. It does not take a great deal of grey matter to work out that Mosman has the worst clearance rates across Sydney, currently hard pressed to break thirty per cent. This has further contradicted the market as at first, it appears that the market is no longer there, however this could not be further from the truth. What we are witnessing is agent-backlash. With the Eastern Suburb’s markets still maintaining a better than sixty per cent clearance rate, the simple reality of our market, is that the opinions of value provided have been grossly inaccurate of late.

No longer available for purchase and inspection are the following properties that secured new owners this week, 11 Shellbank Parade Cremorne, 8 Buena Vista Avenue, Clifton Gardens, sold ahead of the scheduled closing date. 16 Brierley Street, Mosman, has a new owner, and 69 Rangers Avenue, Mosman has also been sold prior to auction. On top of these sales, we have another twelve million dollars of Mosman properties in the final stages of negotiation, and/or, awaiting exchange. With the local market nearing it’s end for the year 2002, it will be interesting to see which properties reach a satisfactory conclusion. Whilst it could be argued that the auction market has seen better days, the property market is still a fair way from finishing for this year, and the terrorist alerts add another new dimension. We are also seeing Mr. and Mrs. Gazump enter the market after a long absence!!

The interest rate debate continues to dominate the market and it is anyone’s guess when we will see the first rate cuts. The nation-wide drought is causing much concern for obvious reasons, and the State’s Governments are expressing concerns, as they don’t want to see the surplus funds which they derive from stamp duty, dry up either. This then will direct much attention to the 2003 property market, so the pressure will be on The Reserve Bank to ensure that the New Year market starts with positive momentum so that the economy can follow suit. If the market is lacklustre and indifferent, it could take months to re-ignite the market and the usual peak summer market could be lost until we arrive at the spring market later in the year. Should this happen the economy and real estate market could suffer dire consequences.

The 2001 Census has confirmed what we have been talking about all year. Yes, good old property still remains the topic of conversation. I have said on more than one occasion that property is the largest employer and this has been confirmed in the latest reports. Since 1991, the number of people in the property industry has almost doubled, and now accounts for nearly 1 million workers, which is 11 per cent of the workforce. The areas with the greatest densities are North Sydney with 30.6 per cent, Mosman 28.8 per cent, followed by Woollahra with 26 per cent. Interesting to note that Mosman and Woollahra are the number one and two suburbs respectively for the average median prices.

Whilst the local market might have lost some of the spring in its step as people walk around the open for inspections, the ex-pat market is heading home for Christmas and we have received many e-mails seeking appointments. Our goal is to save Expats time and minimise the hassles of house hunting with our exclusive and innovative Christmas Break House Hunt Service.

Here’s how it works… We are asking all house-hunting Expats who are returning to Sydney in December and January, to contact us in advance to ensure that inspections can be arranged. So far, we have more than $80m worth of property to choose from.

If you are a local subscriber and would like to add your property to the Expat Inspection List, please call our Expat Coordinator Jacqui Rowland-Smith on +612 9969 7622 or click email us.

Where would our industry be without the Internet?

Whilst some are busily counting the number of properties available in our market, some of the vendors are counting on a result!! There are plenty of interesting challenges out there at the moment. What remains to be seen is who can perform in the current market, as more than a few agents have been listed as “Missing in Action”. Cheers and clink… ^__^

P.S. It is twelve months this week since our good mate Mark Reynolds left our property market. Mate, you may be gone but not forgotten. Cheers.

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23.11.02Robert SimeonNo Comments »

At Richardson and Wrench we believe we have the best possible solutions to help you sell your home. So confident are we about these services we don’t mind helping you have a look around at our competitors.

So if you are looking for real estate agents in the Mosman and Neutral Bay area here is a list of real estate agents that can assist you.

Real Estate Agents Mosman New South Wales

• Belle Property MOSMAN (New South Wales)
• Century 21 MOSMAN (New South Wales)
• Cousins & Co MOSMAN (New South Wales)
• David Murphy Real Estate MOSMAN (New South Wales)
• Edmonds Real Estate MOSMAN (New South Wales)
• Focus Real Estate MOSMAN (New South Wales)
• Gayle Walker Real Estate MOSMAN (New South Wales)
• Gotch Real Estate MOSMAN (New South Wales)
• Hamish Baker Real Estate MOSMAN (New South Wales)
• Harbourside Living MOSMAN (New South Wales) MOSMAN (New South Wales)
• James S Lindsay Real Estate MOSMAN (New South Wales)
• L.J. Hooker MOSMAN (New South Wales)
• Maddisons Real Estate MOSMAN (New South Wales)
• Marinovic Real Estate MOSMAN (New South Wales)
• McManus Real Estate MOSMAN (New South Wales)
• Miles Felstead Reality Pty Ltd MOSMAN (New South Wales)
• Mosman First National MOSMAN (New South Wales)
• Mosmanrealty.com.au Pty MOSMAN (New South Wales)
• O’Gorman & Partners Real Estate Co MOSMAN (New South Wales)
• P.Leahy Real Estate MOSMAN (New South Wales)
• Pacific Property Group Pty Ltd MOSMAN (New South Wales)
• Pelican Properties MOSMAN (New South Wales)
• Raine & Horne MOSMAN (New South Wales)
• Residential Lifestyles MOSMAN (New South Wales)
• Select Property Services MOSMAN (New South Wales)
• Sullivan Real Estate MOSMAN (New South Wales)
• Tony Byrne Realty MOSMAN (New South Wales)
• W Estate Agents MOSMAN (New South Wales)
• Warwick Beehag MOSMAN (New South Wales)
• Waterford Partners MOSMAN (New South Wales)

Real Estate Agents Mosman New South Wales

• Awaba Properties NEUTRAL BAY (New South Wales)
• Ben Boyd Real Estate NEUTRAL BAY (New South Wales)
• Century 21 Harbourside NEUTRAL BAY (New South Wales)
• Coldwell Banker Mosman NEUTRAL BAY (New South Wales)
• Croll First National NEUTRAL BAY (New South Wales)
• EPS Property Search NEUTRAL BAY (New South Wales)
• Elders Real Estate NEUTRAL BAY (New South Wales)
• Elite Property Brokers NEUTRAL BAY (New South Wales)
• Gardenview Apartments NEUTRAL BAY (New South Wales)
• Homes on the Move NEUTRAL BAY (New South Wales)
• Investment Property Managers NEUTRAL BAY (New South Wales)
• L.J. Hooker NEUTRAL BAY (New South Wales)
• Lionel Laird & Co P/L NEUTRAL BAY (New South Wales)
• McGrath Estate Agents NEUTRAL BAY (New South Wales)
• McGrath Estate Agents Lower North Shore NEUTRAL BAY (New South Wales)
• Platino Properties NEUTRAL BAY (New South Wales)
• Raine & Horne NEUTRAL BAY (New South Wales)
• Ray White NEUTRAL BAY (New South Wales)
• Shore Partners NEUTRAL BAY (New South Wales)
• Village Lifestyle NEUTRAL BAY (New South Wales)

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20.11.02Robert SimeonNo Comments »

The applause in the Sydney property market this week reached a crescendo, with announcements by the Reserve Bank of Australia about the state of the economy, and the much awaited release of Jonathan Chancellor’s ‘tell all’ book about what really happens in the pantry of Sydney property. With the Sydney property market nearing the final curtain for 2002, the orchestra is very much up-beat as it plays the re-mix version of ‘I will survive’, which has left many ‘dancing in the streets’. Next year’s interest rates, will in all probability be as low as a touring English batsman’s Test batting average.

At a dinner this week the man who pulls our purse strings revealed, whilst discussing ‘Monetary Policy in an Uncertain World, with those in attendance “When we come to monetary policy more generally, and we look around us at the challenges facing central banks in other countries, we are reminded that decisions are never easy. But if ever I am tempted to regard the Reserve Bank of Australia’s task as difficult, I quickly banish such thoughts when I look at the task faced by our counterparts elsewhere. I do not think any of us at this time would wish to trade our economy for another, or our monetary policy outlook for that of any other country of which I am aware”. It certainly has been a busy week for Mr. Macfarlane, especially with the unprecedented 2003 forecast earlier in the week that interest rates will be locked at their present low levels until well into next year, and could be cut if the world economy sinks further.

It was only a month or so ago, that the Reserve Bank was indicating a shake-out in the property market. This then turned into a stake-out by buyers who then became as active as a Carr Government policy announcement. I will get onto that a little later!! What we are really seeing is a united front from the powers that be, who are sending out a very clear message, that the real estate market is very much a protected species. It is imperative that this market continues to perform, for our economy to remain positive and progressive. What we now know, (and we have never before witnessed such a market strategy) with the release of this information, is that real estate will play a dominant role next year, and without a shadow of a doubt, the New Year property market will be bullish with plenty of testosterone. This also paves the way for an interesting conclusion to the 2002 market, as we are now seeing many hedging their bets as they see the market climbing to even greater heights, with the current market still offering a window of opportunity.

The Carr Government promised last year that radical changes would be implemented to curb some of the unethical behaviour patterns of some real estate agents, which would come into force this year. Like most of the promises they are still very much on the popular ALP white board. It was only when an investigative report was published in The Sunday Telegraph revealing that the practise by these agents to underquote auctions, was widespread across Sydney. Once again the Government announced that the legislation would come in next year. This was the first time that I have ever witnessed agents being outed, and I applaud those who compiled this report. Once they get tired of staking out the east, we welcome them over here when they write about the over quoting to vendors. We have had some great ones this year. I remember one waterfront was on the market for $9.650 million, to be later sold for $4.320 million, and there are a couple of interesting ones at the moment where agents have indicated double digit sales. Mosman has had just the one double digit sale, and I really can’t see it changing from that, not in the short term anyway.

On Monday evening it was canapes and caviar for the launch of “The Sydney Hot Property Guide” by Jonathan Chancellor, aka Title Deeds. The inaugural release about the goings on of our property industry, and I must say it is a brilliant read. With 125 suburbs covered this really is a must for your bookshelf, as never before has the Sydney market been covered with such depth and accuracy. At the opening I observed some blushes and flushes, and I still can’t work out how the Eastern Suburbs agents can talk and drink, with all those olives in their respective mouths. At a RRP of $21.95 you will make plenty if you follow the paths of those who have made millions from renovating houses.

From reading too much into the market, to now reading all about it!! It could be argued that now the ‘penny is starting to drop’, when it says in the book ‘If Monopoly was a Sydney board game, then Mosman would be Mayfair’. I’ll drink to that, cheers and clink…^__^

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The property market once again is poised to finish the year on a positive note, as the market rallied in light of this week’s decision by the Reserve Bank of Australia, to leave the cash rate target at 4.75 per cent. This certainly leaves the door open for future rate reductions, which in all probability will be a New Year’s present to the Sydney 2003 property market. Next year, the market will embark on its seventh year of unprecedented trading, and the powers that be will be mindful that the only ‘itch’ they anticipate will be that of buyer impatience, given the Christmas and New Year break. No doubt all eyes will be on the US economy after the US Federal Reserve slashed interest rates by half a percentage point to 1.25 per cent. This represents a new four-decade low. Whilst some may argue that there is anecdotal evidence that all the property markets have eased, what needs to be identified is that the markets have been guaranteed longevity. The present property market poses the question… where can you do better with your money?

Weak share markets, combined with investor nervousness has seen investors concentrate on the merits of retail investment. With figures released from Australian Property Monitors showing that more than $220 million worth of retail property traded hands across Australia during the month of September, it would be fair to assume that this figure will increase as the current yields are at present returning around seven to eight per cent. Australian Property Monitors also revealed that the average median price for a Sydney home in June to August 2001 was $332,000. For June to August 2002 homes had jumped 20.5 per cent to $400,000. Home units were not as bullish, however they also finished in the black with a 13.8 per cent gain over the same period. In June to August 2001 the average price was $290, 000 and for the same period in 2002 it was $330,000. I just love this quote I read, ” Always pay a good price, as history shows that money is more often made at the purchase than at the sale”.

Without a shadow of a doubt, the greatest modern day blunder is the reliance on clearance rates as a market indicator. Here is a classic example; one Sunday scribe wrote, ” Things weren’t going quite as well in the other areas of Sydney. At Richardson & Wrench Mosman’s prestige auction, four from four were passed in”. Well that is true, we did pass in four from four. What they failed to mention was that we offered seven properties last week, and three were sold beforehand. Of the seven properties, five have now been exchanged, and another is all but exchanged, whilst the seventh and final property is under negotiation. A week on and the result will in all probability read seven from seven!! I prefer a market that is all about the facts. I must admit that I have never really been into weekend fairy-tales.

You may have noticed that the Mosman home unit market has been a bit stagnant of late. Well the explanation for this is that Marize has been away on her honeymoon. So don’t be confused if you see “details, Marize Bellomo”. It is the same lady with a different surname. Welcome back Marize, and also a big welcome back to the ex-pats who are busy securing property for pre-Christmas Day settlements. I just love the International ring that our market has… cheers and clink… ^__^

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9.11.02Robert SimeonNo Comments »

As we enter the final stretch, we have more than the Melbourne Cup to occupy our thoughts. Just like daylight saving, the property market is sending out a clear message that there is still plenty of light shining upon it. The auction market is certainly very different, with the buyers willing the market down, and many have stopped waving at the auctioneer. What happens now is determined by how the respective agencies adapt to this market, and what strategies they exercise to secure a sale. From our perspective, we prefer a more laid back approach wherein we exhaust all avenues before we execute the sale, as against some agents whose vendors are leaving the auction rooms with a tourniquet and severe concussion.

At the end of the day the sale of a home is not life threatening, nor should it be treated that way, because the purchasers will still be there tomorrow, as was the case with our auctions this week. The two properties that failed to attract a single bid were both sold the very next day, and yes the vendors are very happy. What we are seeing is a ‘push and shove’ market. Some purchasers believe that they are in the driver’s seat, only to find out the car they are sitting in is actually in neutral. Oh well, back to the real estate section in The Mosman Daily for them!!

As we enter the first week of November it will be interesting to see when the market drops the final curtain for the year 2002. We believe that unlike last year, the market will effectively trade well into December. The ex-pats are somewhat dominant at the moment and over Christmas and the New Year period, they will be the big contributors to the market. From the e-mails we are receiving many are returning home for Christmas, and January could very well be a record selling month. Actually, next year is shaping up well with the much-awaited news that the interest rates will drop again, which is great news for the property market. We expect the first run of properties in the New Year to be much the same as this year. In a word, “bullish”.

Many of the ex-pats who inspected properties at the end of last year have now studied and compiled twelve months of market research, leaving them better informed which will allow them to comfortably purchase a property over the Christmas period. The property market is really and truly a global market now. It will be very interesting to see what volume of sales are attributed to the ex-pats over Christmas and New Year.

We have around fifteen million dollars of Mosman property awaiting exchange at the moment, and we will report more on those next week. For any who believe that the property market is a spent force, here is an interesting observation. A few agents will eclipse their all time selling records this quarter, and that is not off the record.

Have fun, and if you are in negotiations on a property don’t think you are Robinson Crusoe, a few this week were left feeling like him!! Cheers and clink …^__^

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2.11.02Robert SimeonNo Comments »

If you happened to notice an abundance of mini skips around the Mosman streets this week, they are not there for new renovation work, they are simply assisting with the delivery of the this week’s Mosman Daily. It was a record edition with 153 pages of real estate. The much anticipated property extravaganza mustered as much excitement as being the official scorer for the touring English cricket team. It was a combination of new property offerings mixed with recycled properties that failed to sell earlier in the year, some vendors even embarking on their third marketing campaign. So it is safe to suggest, that what you see now will in all probability, be all that is offered for the remainder of the year.

For a few agents, having this volume of property available is the ideal selling market, and as Big Kev says “I’m excited”!! What we have now is a market that requires superior selling skills, and I must admit that we have been anxiously awaiting its arrival. Agents will have to work the database, and try to average around twenty private inspections each week. This takes us back to the good old days where agents actually used their negotiating skills as they locked horns with purchasers in the pursuit of household conciliation and arbitration. As the markets ‘duck and weave’ so do our selling strategies, but one thing that will never change in our industry is the six star service that we are offering our clients.

Many are asking, just what the property market is doing at the moment given that some of the dynamics are changing. The first factor is, that clearance rates peaked earlier this year at 85 per cent and currently they are around 60 per cent, which with respect, is where they should be. It is blatantly obvious that market participants are acknowledging the Reserve Bank’s request for a more stable market and yes, this is indeed another healthy sign. This is further acknowledged when auctions are recycled back on the market. These are classic examples of where the vendors got it wrong, as interested parties did not concur with the level of pricing expectations. What we are experiencing is a much more balanced market in terms of price realisation, and vendors need to accept the reality of the current market, as do some agents who are still somewhat ruthless, applying too many naughts on some valuations.

It will be a most interesting summer selling period and I must say that we are very confident of some excellent results. Others may not share my optimism. The proof will be in the results and I am even more confident that a few agents will excel in the current market conditions, and more than a few will flounder. This is already starting to show with some, who are describing the market as being diabolical. As they say the proof of the market is in the eating, and we will be dining out on it for quite some time to come!!

Never before have the words ‘mind over matter’ rung so true. It does help if you know what you are doing in the first instance… cheers and clink… ^__^

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26.10.02Robert SimeonNo Comments »

This week was a reality check about the value of life, that planted seeds of uncertainty and remorse, as one of the most beautiful and happiest of destinations on the planet had been transformed into a human holocaust. Bali, the island of romance and beauty had been transformed into an island of bereavement and brutality. For the Balinese population many believe that this is a clear example of a bubble that has been burst. I, like many others will return to Bali. My spirit in life will not be broken, nor my affection for these wonderful people and their beautiful island, “Freedom is the true possession of only those who have the courage to defend it”.

Back from reality to realty, and the Mosman Daily which, this week, is as full as a state school!! With the school holidays well and truly behind us, it is time to weave a little magic in the market and really work the available purchaser lists to the max. What we have now are touches of bygone markets where the agents really had to work the markets to attain the desired results. Sadly, some agents have become somewhat overweight from an over indulgence in past markets, where purchasers carried the majority of the workload. There is no doubting how the property market has changed. Agents now have to work a lot harder and smarter on their strategies, and for some that means returning phone calls from prospective purchasers, and yes that will also involve phoning purchasers who have inspected the properties. From our perspective as an agency, we work our buyer database as aggressively as we can, and on a really good week, we can have up to 100 new buyer entries. As more and more of the property players are using the Internet as their preferred medium of research, this is of great assistance.

Once again the State Government was rubbing their hands together, with the release of the Budget surplus estimates exceeding the initial expectations. Thanks once again to the property industry! The financial year to June 30, showed a surplus of a healthy $495 million, which was $127 million higher than first budgeted. Stamp Duty was once again a star performer, given that they had anticipated a fall. It just goes to show how in touch they are with the economy. It is a good thing that the Federal Government is still driving the property market and not the State Government. This does indicate how important the property industry is to our economy.

Whilst the property market is still being described as the property boom, it is probably an opportune time to remove the word “boom” and replace it with the word “market”. It is a market that vendors and purchasers invest in, as one does with the share market. It is very clear that in the year 2002 prices have remained stable and consistent in Mosman. The market over the last six months has had zero growth, which is a very positive sign for the market and hopefully this remains the case for quite sometime to come. With the market showing greater consistency, it will allow the participants to gather a greater understanding of the market dynamics, and thus it will become a much easier market to understand. Personally, I believe this is the much awaited light at the end of the tunnel.

As you can see from our property menu we are going to be busy over the next few weeks, and the entire team is confident and enthusiastic with the challenges before us. One thing is certain, we will be listening to the purchasers rather than talking. Watch for some properties to sell well before the set dates!

To the victims and families of the Bali tragedy, our sincere condolences.

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19.10.02Robert SimeonNo Comments »