Consumer Sentiment Has Something To Smile About

Consumer Sentiment Has Something To Smile About

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Depending on who you are talking with about the global economies commentary is either optimistic or pessimistic – this appears to be the new world order. Personally I’m on the optimistic side although I’m well aware that consumer sentiment can change in a heart – beat. The Commonwealth Bank future business index, which gauges the sentiment of mid – size businesses with a turnover of $10 million to $100 million found Business bullish on 2014: Survey. The index was 17 points in the December quarter, its highest level since the survey began in September 2011, and up from 10.8 points in the previous three months.

I don’t really care these days what weapon of choice one uses to determine what’s happening in global economies so long as we keep seeing positive consumer sentiment. 2014: The year that the world is taken off life support is yet another interesting analogy and very hard to argue against. Despite the rejoicing the Australian economy has been dragging its feet for well over four years now so it was only a matter of time before the mode went much more up tempo.

CNY14-VRN

Another brilliant artwork by Tim Mooney we commissioned for the 2014 Chinese New Year.

SYDNEY AERIAL PHOTOGRAPHY 

Gong Xi Fa Cai – The Year of the Horse is connected to travel and speedy success. It’s a good year for action, enterprise and achievement – as the horse has plenty of energy and charm. So it will be most interesting to see how dominant the Chinese buyers are in 2014. Chinese buyers fueling Sydney property hotspot demand Australian banks’ lending to Chinese borrowers has soared by 75 per cent in a year, as the industry rushes to lift its exposure to Asia’s powerhouse economy. The value of loans to Chinese borrowers on the books of Australian banks swelled by $US12.3 billion to $US28.7 billion during the year to September, figures from the Bank for International Settlements show.

More than 20,500 people from China, Hong Kong and Taiwan settled in Australia in the year to June 30, according to immigration department figures. Another 219,000 came to Australia as temporary immigrants and students, the data show.

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30-01-2014 10-31-26 AM

The APM – House Price Report for the December Quarter 2013 highlights Sydney as the absolute star performer in the house and apartment sectors. The March Quarter 2014 will confirm that the Sydney property market is taking off – although we need to look closely at what is happening in Mosman. Last year I wrote “in 2012 out of 52 weeks there were on 33 occasions more than 100 houses on the market. In 2013, Mosman only broke the 100 mark on just four occasions which explained why we had fewer houses on the market.

We work on the philosophy that only five per cent of house owners are totally satisfied with the home they currently reside in and seventy – nine per cent “acknowledge” that they would be happy to move to a better home however it’s not a major concern or priority. The lesser the number of homes on the market resonates back through their consumer sentiment. It has become instinctively clear that this housing desire was lost in the Global Financial Crisis (GFC) as households re-calibrated their lifestyles and requirements.

Again this is seen with the number of houses on the market this week which was quite disappointing – from last week’s 47 this week it moved to 68. This time last year the number was 79 and the year before that it was a staggering 129.

MOSMAN – 2088

• Number of houses on the market this time 2013 – 79
• Number of houses on the market last week – 47
•Number of houses on the market this week – 68
•Number of apartments on the market this time 2013 – 79
• Number of apartments on the market last week – 40
• Number of apartments on the market this week – 47

CREMORNE – 2090

• Number of houses on the market this time 2013 – 7
• Number of houses on the market last week – 6
• Number of houses on the market this week – 10
• Number of apartments on the market this time 2013 – 19
• Number of apartments on the market last week – 11
• Number of apartments on the market this week – 10

NEUTRAL BAY – 2089

• Number of houses on the market this time 2013 – 12
• Number of houses on the market last week – 4
•Number of houses on the market this week – 5
• Number of apartments on the market this time 2013 – 31
• Number of apartments on the market last week – 23
• Number of apartments on the market this week – 32

Source: Australian Property Monitors

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
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For this week’s opens for inspection
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All the signs are there for an action packed 2014 property market (well in Sydney anyway.)

Naturally, there will also be many conversations about that mysterious property bubble too. As we have said on countless occasions ‘yes – there will be areas that crash and burn, that’s the nature of the industry’.

Although this time around there are many more buyers than sellers which is a pretty good clue – better known as a vendors market.

Cheers ^__^

2 Responses to “Consumer Sentiment Has Something To Smile About”

  • Gordon says:

    Welcome back, Robert, we’ve missed you!

    One thing that seems significant in the fall in stock-on-market is the extortionate level of government taxes applied to changing properties.

    The state govt grabs a large and unjustified take for stamp duty on all property sales, and the feds hop in for their cut of CGT on investment real estate. Given the current level of economic uncertainty, people often tend to stay with what they’ve got, rather than look to upgrade/expand with all the statutory costs involved.

  • Ann says:

    Welcome back Robert and Gong Xi Fa Cai

    Lets hope the economy lifts well in 2014

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