Australia Keeps Digging – Time To Start Building!

Australia Keeps Digging – Time To Start Building!

Spring has sprung (tomorrow) and already, we are seeing a totally different market response to new listings. The clue: online enquiries are up 500 percent compared to this time last year. Whilst it’s early days, this does coincide with our belief that the Mosman housing market has bottomed and as purchasers adjust to this fact, more properties will come on to the market. Since the Global Financial Crisis (GFC) we witnessed “the ignore” – market with vendors and purchasers not exactly on speaking terms.

Naturally, we will continue to (constantly) read those doom – gloom stories: Warning: after the boom it’ll be Dutch and go – “Australia’s faces a run on its currency, a deeper collapse in housing prices and a bank funding crisis to rival Europe’s as it tries to come to grips with life after the mining boom, according to a report from a boutique US advisory firm.” To put this into perspective Stephen R. Covey once said “How many people on their deathbed wish they’d spent more time at the office?”

As for the mining boom – Mining investment boom rolls on planned spending in mining rose in 2012/13 to a record $181.5 billion, equal to no less than 13 percent of Australia’s $1.4 trillion in annual gross domestic product (GDP). The ‘head teller’ at Australia’s Reserve Bank of Australia (RBA) commented: Stevens sees no end of mining boom although it is important to note that end of mining boom not all bad: economists given Australia is much more than a mining quarry and will then pursue other forms of business growth. It’s important to note that the price of iron ore keeps plummeting and last night, hit the lowest price in 22 months when it closed at $US88.70.

To put this all into perspective Paul Bloxham said on an online blog “Much has been made of the recent shelving of longer term mining expansions, including Olympic Dam in South Australia. Importantly, though, these projects were never actually part of our, or officials, forecasts. For forecasting purposes, they were treated as being on the shelf. So recent announcements just shelve projects that were already on the shelf! In fact, over the past three months more projects have gained final approval, not less.”

BUY PRINT

Building and telco sectors set to lead post mining surge: BIS Shrapnel – “As mining investment peaks in 2014 and starts to decline, non – mining investment will stabilise and start to pick up, taking over as the engine room of growth. Stock shortages, population growth and lower interest rates should stimulate the housing market and dwellings investment.” So when we join the dots (again) Dwelling approvals record a 17.3% drop in July: ABS which equates to a 10.5 percent drop for the year. The reason why housing markets and dwelling investments are in decline is quite simple: wages and building costs remain at all time highs while property values decline plus ridiculous government taxes remain at all time highs.

In the interim; we can expect no government solutions anytime soon given they are all stone motherless broke. Makes one wonder if the federal and state governments were listed on the Australian Stock Exchange (ASX) just exactly what the share price would be? I think a sell recommendation!

I must admit this debt is ugly which would explain why the Gillard government was recently told by Treasury, to reduce spending. NSW, Victoria and Queensland inherited bankrupt economies and that tradition continues (based on the above graph). Who wants to bet me that the budget will not be in surplus in 2012/13? If unsure – please refer again to the above graph!

It should be noted that property ownership contributes more to Australia’s GDP than mining: Cameron Kusher it is important to note that mining and housing arrived at the same time in Australia and there is a distinct difference between the two? The house (where principal place of residence) is tax free when sold.

Again the Mosman market remains in a very tight holding pattern in terms of listings available – which we predict will drop to around 80 over the next month. The September sales will point to a strong vendor market – remember where you read it first!

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week– 100
    • Number of houses on the market this week – 104
    • Number of houses on the market this time 2011 – 107
    • Number of apartments on the market last week – 95
    • Number of apartments on the market this week – 92
    • Number of apartments on the market this time 2011 – 93

    CREMORNE – 2090

    • Number of houses on the market last week– 15
    • Number of houses on the market this week – 22
    • Number of houses on the market this time 2011 – 14
    • Number of apartments on the market last week – 18
    • Number of apartments on the market this week – 19
    • Number of apartments on the market this time 2011 – 31

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 17
    • Number of houses on the market this week – 17
    • Number of houses on the market this time 2011 – 17
    • Number of apartments on the market last week – 45
    • Number of apartments on the market this week – 45
    • Number of apartments on the market this time 2011 – 67

    For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate.
    • Click Here

    For this week’s open for inspections
    • Click Here

Carbon backflip with a double pricing pike which is yet another embarrassing acknowledgement that despite years of number crunching – Julia Gillard and her government can’t count.

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Local elections coming up – North Sydney has 42,412 enrolments and Mosman 19,516 enrolments.– As a municipality, Mosman has gone backwards – time to re – zone with plenty of commercial / residential adjustments. Military and Spit Roads must become cosmopolitan and move with the times.

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Mosman has to become a player in the market and start subdividing useless pieces of real estate to make them income producing.

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In time it will happen!

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Cheers ^__^

7 Responses to “Australia Keeps Digging – Time To Start Building!”

  • Ann says:

    Interesting to see the Darling Harbour shot, you can tell it was taken in mid July or mid August?

    Do you know how?

    – the marina berths are changed as they setup or pack away the Boat Show!!

  • Ann says:

    Also cannot believe the Federal Government is allowing the sale of Cubby Station to the Chinese. It produces 10% of our cotton and has water reserves that exceed Sydney Harbour.

  • Gordon says:

    Representing all the dispossessed, I think we should start here a new revolutionary movement to be known as the Democratic People’s Republic of Banbloodyann.

  • Mick says:

    Gordon, agree wholeheartedly but previous efforts were unsuccessful due to the lack of self-awareness of said subject. A ban would be welcome as intelligent debate/discourse as never emanated from said subject.

  • Mick says:

    Grow some, Robert…or is Ann your girlfriend or does she give you a freebie supply of her product? She’s overtaken your blog to the degree that there are no other contributions but her shallow westie opinionated drivel.

    You’re judged by the company that you keep as well as your failure to prevent her from taking over your blog and trivialising it.

  • I have emailed Ann – where it was agreed that a break from posting was required. This has been agreed to – so Mick the floor is all yours 🙂

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