A combination of anomalies

A combination of anomalies

As they say,”markets move in mysterious ways”. What we are witnessing now is a combination of anomalies, that are thought-provoking yet, at this point, little more than “a storm in a tea cup”. The top-end of the market is as strong as the Australian swimming team, as long as the property is assessed on market value, as against an ‘ego’ value, which see agents buying listings continually, as they fight for survival. Like many businesses today, the death knell is loud and clear for those who failed to move with the times, and did not recognise the game plan that would see growth and prosperity. Presently, we are seeing that property markets are not moving as one, and in some instances the vendors are adopting a ‘batten down the hatches’ approach. This could be further argued with the interest rate reprieve, which again saw the Reserve Bank decide against a further increase in rates.

Whilst many are stating that investors are back into the property market, the rental vacancy factors are adding further confusion to this assumption. Last Saturday in The Sydney Morning Herald, I counted the number of units for lease in Mosman, the total being 177. In the price bracket, in excess of $1,000 per week, there were two properties advertised, the $500 to $1,000 category just the fifteen properties. In the up to $500 a week category, a massive one hundred and sixty units all searching for a tenant. For the first time in ages we are seeing rent free terms being offered, and rents being slashed to attract a tenant. So what will happen? Many are hoping that this will present an opportunity to buy well at the expense of another, and I can assure you that there are plenty who are cashed up and waiting to purchase. Once again the business plan comes into play, well at least for us it does because we have the only ‘apartment specialist’ in Mosman, and I can assure you that Marize is one very busy lady at the moment. Because of her knowledge of values, which is further assisted by her qualifications as a registered valuer, the opinion of value is precise and correct. Having the largest database of buyers in Mosman certainly benefits our clients at both ends of the spectrum. This is one of the better examples of the ongoing benefits the Internet offers, with enquiry levels at an all time high. It is amazing how a solid business plan can change a negative into a positive.

We are experiencing many idiosyncrasies on a daily basis, and for the first time in ages we are seeing different areas of the market changing direction. It is usual for the lower end to be strong then the market moves up from there. I anticipate a very strong top-end of the market, because confused and battered sharemarket investors will focus entirely on their principal place of residence. They will use their principal place of residence as the mother ship, and run their borrowings from there to develop their investment portfolio. In 2001, out of the ten highest sales in Mosman we negotiated six of them, so this really is the market that we know better than most, and I am more than happy to pass on what buyers are telling us. One would have to agree that it makes plenty of cents and sense for some!

The stage is set for a very interesting Spring market, and we already have some fantastic property awaiting release to the marketplace. As for it being a soft market, I can’t agree with that theory. One must remember that it takes just four weeks for the property market to boom, and eight months for it to plateau. The market has traded quite well through winter, mainly as a direct result of reduced volumes of property being offered. It would be a very brave person who would suggest that the market is finished. We see this market as the perfect opportunity to establish quite a few more records. Like most things in life it is mind over matter, plus a business plan. We can’t elaborate too much on that because too many agents subscribe; how else are they going to find out what is happening in the market. Other agencies followed our lead, by e-mailing the open for inspection lists each week, they learned it here first. Yes, we were the very first.

We have a simple philosophy here at Richardson & Wrench Mosman, “don’t blame the market, lead the market”, and it is most obvious that we are doing that. We focus harder than most on our reputation for being honest, making us the smarter choice of agent. An agency today needs to provide so much depth and sophistication of service, learning how the Internet works would be a great start for some of the other agents!! Cheers & clink ….^__^

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