Economic reform in Australia starts a few fights!

Economic reform in Australia starts a few fights!


It’s getting carbon reality bites more interesting as the believers (or should that read deceivers) at Fort Fumble appear to be choking on their very own lack of emissions. Australia has approximately 8,500 million households and consensus indicates that it would be easier to simply remove the government as carbon debate leaves Gillard out of breath. Not content with trying to run that little thing called an economy – Fort Fumble is now at war with business leaders, constituents, mining, energy, manufacturing, industry, clubs, hotels, researchers and scientists. Mediation would be a good start if Fort Fumble had anything to bring to the table and many believe that the carbon tax is the worst ‘policy on the run’ announcement ever.

Billions pledged in carbon compo declared Fort Fumble although what it can’t guarantee is that the carbon tax will put jobs at risk, ACCI survey suggests. More than two–thirds of Australians are concerned that the introduction of a carbon tax will put jobs at risk, while an even greater number believe companies will move overseas as a result of it. A recent survey by the Australian Chamber of Commerce and Industry revealed 59 per cent of people are opposed to a carbon tax, while only 27 per cent declared that they support it. It becomes increasingly difficult to sell a tax when Fort Fumble still doesn’t know what it is actually selling – or does it still not know how to actually sell it? The carbon tax is very black and white with way too much grey. It desperately needs some colour.


Now to that other thing called an economy. The Tax Forum is scheduled for October 4 – 5 when 150 representatives of community groups, businesses, unions, governments, tax practitioners and academics have now been told Labor closes door on tax reform – just like the Henry Tax Review which was also rejected. Giant tax hole sets up savage budget as Australia’s very own Master Economist, Wayne Swan, struggles to understand that when personal income takes a $1 billion hit and business tax takes another $3 billion hit, alas – our economy is not performing well. Not exactly a case for ‘everyone’s a winner’ although rest assured, Wayne Swan proved Keynes works but can he avoid Keynes’s curse?

Fort Fumble you have a problem!

And that little thing called inflation!

The real estate industry is (was) the biggest employer across Australia!

As the economy fights back from summer of disasters the funniest yarn of the week was from Steve Keen who wrote this housing bubble could break our banks. Yes – the same person who predicted that during the Global Financial Crisis house prices would drop by forty (40) per cent. Yes, our banks are concerned but not about house prices – rather banks nervous about new pokie rules as pokie limits prompt banks to review lending to pubs.

More sobering and intelligent boom – time returns well and truly over says bank chief with which I totally concur as Mosman busy, but first home buyers absent. As news filters through that we are now seeing some anecdotal sales evidence above $10 million, this in all probability, will resonate through the local market in a positive way. The entire top–end property markets are under the pump to start posting these sales results and allay the myth that our property bubble is bursting. Yes, we are seeing a positive return of confidence, albeit somewhat slower than we have seen previously.

This brings us to the final part of Mosman house sales above $5,000,000 from 2005 to 2010.

Source: Domain Property Monitors

2005 – MOSMAN HOUSE SALES ABOVE $5,000,000

  • Number of house sales – 15
  • Total Value – $131,120,000
  • Median Price – $6,500,000
  • Average Price – $8,741,333
  • Highest Price – $14,800,000
  • Auction Clearance Rate – 100 per cent (one property)
  • House Sales above $5,000,000 – 6
  • House Sales above $6,000,000 – 2
  • House Sales above $7,000,000 – 0
  • House Sales above $8,000,000 – 0
  • House Sales above $9,000,000 – 0
  • House Sales above $10,000,000 – 2
  • House Sales above $11,000,000 – 2
  • House Sales above $12,000,000 – 0
  • House Sales above $13,000,000 – 1
  • House Sales above $14,000,000 – 2

2006 – MOSMAN HOUSE SALES ABOVE $5,000,000

  • Number of houses sold – 28
  • Total Value – $205,033,000
  • Median Price – $6,400,000
  • Average Price – $7,115,228
  • Highest Price – $15,000,000
  • Auction Clearance Rate – 50 per cent (two properties)
  • House Sales above $5,000,000 – 8
  • House Sales above $6,000,000 – 7
  • House Sales above $7,000,000 – 6
  • House Sales above $8,000,000 – 2
  • House Sales above $9,000,000 – 0
  • House Sales above $10,000,000 – 0
  • House Sales above $11,000,000 – 2
  • House Sales above $12,000,000 – 1
  • House Sales above $13,000,000 – 1
  • House Sales above $14,000,000 – 0
  • House Sales above $15,000,000 – 1

2007 – HOUSE SALES ABOVE $5,000,000

  • Number of houses sold – 43
  • Total Value – $337,350,000
  • Median Price – $6,800,000
  • Average Price – $7,845,348
  • Highest Price – $22,500,000
  • Auction Clearance Rate – 40 per cent
  • House Sales above $5,000,000 – 15
  • House Sales above $6,000,000 – 9
  • House Sales above $7,000,000 – 6
  • House Sales above $8,000,000 – 1
  • House Sales above $9,000,000 – 1
  • House Sales above $10,000,000 – 4
  • House Sales above $11,000,000 – 1
  • House Sales above $12,000,000 – 1
  • House Sales above $13,000,000 – 2
  • House Sales above $14,000,000 – 1
  • House Sales above $22,000,000 – 1
  • RWM Research: Now the Global Financial Crisis enters the property market.

2008 – MOSMAN HOUSE SALES ABOVE $5,000,000

  • Number of houses sold – 24
  • Total Value – $172,100,000
  • Median Price – $6,150,000
  • Average Price – $7,170,000
  • Highest Price – $14,700,000 (RWM)
  • Auction Clearance Rate – 43 per cent
  • House Sales above $5,000,000 – 12
  • House Sales above $6,000,000 – 2
  • House Sales above $7,000,000 – 3
  • House Sales above $8,000,000 – 3
  • House Sales above $9,000,000 – 3
  • House Sales above $10,000,000 – 1
  • House Sales above $14,000,000 – 1
  • RWM Research: Total sales above $5,000,000 dropped from $337,350,000 to $172,100,000

2009 – MOSMAN HOUSE SALES ABOVE $5,000,000

  • Number of houses sold – 22
  • Total Value – $158,975,000
  • Median Price – $6,075,000
  • Average Price – $7,226,136
  • Highest Price – $13,200,000 (RWM)
  • Auction Clearance Rate – 25 per cent
  • House Sales above $5,000,000 – 9
  • House Sales above $6,000,000 – 5
  • House Sales above $7,000,000 – 2
  • House Sales above $8,000,000 – 2
  • House Sales above $9,000,000 – 0
  • House Sales above $10,000,000 – 1
  • House Sales above $11,000,000 – 0
  • House Sales above $12,000,000 – 2
  • House Sales above $13,000,000 – 1

2010 – MOSMAN HOUSE SALES ABOVE $5,000,000

  • Number of houses sold – 23
  • Total Value – $165,895,000
  • Median Price – $6,500,000
  • Average Price – $7,212,826
  • Highest Price – $12,600,000 (RWM)
  • Auction Clearance Rate – 33 per cent
  • House Sales above $5,000,000 – 9
  • House Sales above $6,000,000 – 4
  • House Sales above $7,000,000 – 2
  • House Sales above $8,000,000 – 1
  • House Sales above $9,000,000 – 2
  • House Sales above $10,000,000 – 1
  • House Sales above $11,000,000 – 2
  • House Sales above $12,000,000 – 1

It will be interesting to see what 2011 reveals given the top – end markets appear to be in recovery mode.

Next week we will investigate further. Although of much greater concern is NSW takes aim at Canberra’s green energy scheme as power bills soar.

It’s becoming very clear, who is winning the fight.

Cheers ^__^

This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

27 Responses to “Economic reform in Australia starts a few fights!”

  • Ann says:

    Interesting to see top end property value are slowing increasing

  • Hotly Spiced says:

    How much more financial mismanagement are we going to have to put up with before one of those lousy independents crosses the floor? But they won’t do that because we’d then be going to the polls and they know they’ll never be voted back in.

  • The cracks are fast becoming political canyons – NBN Co has been halted due to a contractual costing calamity now a White Elephant. The Carbon Tax will cost thousands of jobs as companies head off shore so that will become another monumental back – flip of epic proportion.

    Then Newspoll comes out next Tuesday and if the PM’s popularity keeps heading south – we can expect to hear not a single word coming from Fort Fumble until well after Easter!

    It’s fast running out of eggs in its basket!

  • Robbie Mac says:

    Interesting data. Post 2007 data surprisingly consistent. I wonder if 2011 will continue that trend?

    Politically, we are still in a holding pattern, as the new state government comes to grip with the enormity of the task before it, and contemplates a plan to deal with it all. With the exception of the occasional need to engage the minority parties in the upper house, we should see some slow but steady progress soon, which will start to build confidence.

    However, that will be counter-balanced by the federal activity. It is worth noting that the independents can change the government without the need for another election, and if, for whatever reason, the ALP decides to test out another new leader, that may indeed be the trigger. One wonders whether the “faceless men” would need to consult with the independents before they executed another leader? Interesting thought.

    Another thought – a certain former PM covets a UN role, so assume he disappears to New York, that would require a by-election. Given recent results in NSW, and how said former PM was dealt with last year, that seat could change hands. Wouldn’t that be interesting?

    Sadly, all of this means that SMEs will continue to suffer as households save more, and the economic climate remains uncertain. Whilst a home is one of the last great methods of tax free saving, it also requires a leap of faith to spend more on another home, when the commonsense of thrift and discretion, as a result of the fear of the unknown, would be to stay put. This would suggest that the broad market will remain flat. However, the impact on the premium end is less certain. Some parts of the top end of town are doing OK, but nothing like pre 2007. So perhaps the results of 2008-2010 that we see above will also be reflected throughout 2011.

    Perhaps a first quarter 2011 analysis is needed (albeit on thin volumes)? Or perhaps we just need some proper governing at Federal level?

  • Sheelagh says:

    Ann did you mean top end values are ‘slowly increasing’ ???

  • Ban Ann says:


    Ann doesn’t know as she’s a confused parrot.

  • Robbie,

    Very well said although under the current government it is becoming most obvious that Julia Gillard struggles to understand the machinations of what drives the economy. She would be better off sticking to the Education portfolio as economics is not her strong point.

    I am looking at doing an analysis of Quarter 1 2010 as compared to Quarter 1 2011 which I will probably wait another two weeks as it is based on settlements so much of March sales are still not recorded. In the meantime I will use the recent data and break it down further which will be an interesting excercise for all concerned.

    Given I have now broken down every Mosman house sale from 1999 – 2011 we have a heap of data to discuss.

  • What a circus our great nation has become with the lack lustre leadership that obviously some voted for! A sad indictment on the poeple of Australia. Maybe we should raise the voting age or make it non compulsory. Not very ‘P.C.’ I know. But really, we are far to ‘P.C.’ in Australia. My Great,great, great grandfather would be turning in his grave.

  • Snow White says:

    I think the Carbon Tax is now dead in the water, or soon will be. The horror budget, making up for lower tax receipts and reckless spending will see the end of Gillard. Labor will remain in power, as Oakeshott and Windsor know they will lose their seats if there is an election. The Greens take control of the senate and Gillard’s replacement limps through to next election. We are doomed for the next 2 / 1/2 years.

  • John says:

    Signing off forever. This blog has lost the richness of sharp, informed and insightful commenters (whose contributions exhibited proper spelling, grammar and punctuation) and gained, to its detriment, a few poorly-educated commenters who are nothing more than Monday-morning quarterbacks and parrots, without an original thought or degree of insight between them. They consider their nonsense so compelling that they upload their tripe several times a week. The vigour and sharp banter between commenters that regularly filled these pages several years ago, to the delight and edification of readers, is long gone and what has slowly replaced it (and now dominates) is not worth reading. Yes, I cancelled my subscription. Good luck, Robert, re-taking control from the few idiots who desecrate your weekly blog.

  • Would love to (*be*) 🙂 a fly on the wall when Bill Shorten catches up with his *mum* over Easter at Admiralty House. The easter egg hunt would not be the only event that draws interest – especially given Fort Fumble is fast tracking Fort Crumble and that means another very long stay in Opposition. The NSW election decimation of the Labor brand would be very much in the forefront of their growing concerns.

    As Kristina Keneally said “the Party did not leave us – we left the Party.” The rest is history – maybe history will repeat itself with “Kerr’s Cur” speech!

  • Ed It says:

    Robert: Did you mean you would ‘…love to [be] a fly on the wall…’ or ‘…love to [make love to] a fly on the wall…’?

    You must have attended Middle Harbour PS with your Deputy Writer, Ann.

  • Jack says:

    John, what will you do for your weekly entertainment now that you have unsubscribed. Is it the blog or the commentators that have helped make your decision. You could read the blog and not the comments of all the ill informed uninsightful. 🙂

  • Ed It – Gulity of talking on the phone and typing at the same time.

    And yes – I did attend Middle Harbour PS and I still quote the school motto:

    To thine own self be true.

    Which then forged my career into selling real estate 🙂

  • John says:

    Jack, good point. Robert’s blog is a good read. If you’ve been a long-time reader you may remember that when VRN’s technology was expanded to accept readers’ comments a few years ago, there was a range of commentators (and viewpoints) which generated intelligent discourse. But over the past 6-9 months, many stopped contributing (except for Gordon and Robbie Mac) once the uneducated rabble started swarming the space. I guess having their names in lights (and hyperlinks to their own blogs and business websites), enjoying their weekly 15 minutes of fame (Andy Warhol would consider that excessive), is intoxicating – and yes, one weekly contributor’s posts appear to be written under the influence.

  • I, like so many others remain absolutely fascinated with blogs especially as Virtual Realty News was one of the very first online communications to appear in Australia – feeling old at now being an 11 year old online veteran.

    It is interesting to note that online blogs are the latest online phenomenon although statistics show that most lose interest after approximately three months. They are bloody hard work to get out weekly but very worthwhile too.

    We (touch wood) have never had to delete a comment or block an individual from posting on our blog – very proud of that statistic.

    John – I must try writing an edition after copious amounts of wine. I must admit that I am under the influence of writing the blog and the fun we can have with it. It is well worth the effort involved not to forget that it delivers us the number one position for Mosman real estate on Google too.

    Now does VRN go better with red or white wine 🙂

  • Ann says:

    The median house prices are starting to increase again, since 2007? Not massively but trending up.

  • Suzanne says:

    Its the reckless spending on the Labor Government that has us in trouble. Blaming the $A is a joke, if it was down, Swan would say we are in trouble cause imports are more expensive, so thats just an excuse. We need an election and quickly.

  • Ban Ann & Suz'ann'e says:

    Ann and Suz’ann’e are the same person. The poor writing style, sentence structure, spelling and punctuation are a dead giveaway as is the compelling need to post nothing new or worthwhile. Ann, you lack the tools to create a new identity in a written environment.

  • Actually completely different ISP’s and Suzanne’s post was made from Port Macquarie so maybe Ann is holidaying in Port and having a ‘sausage’ sizzle with Rob Oakshott?

    Or possibly trimming his beard?

  • Ban Ann & Suz'ann'e says:

    Robert, other than Suz’ann’e providing a Port Macquarie newspaper web link in her post (ANY web address in the world can be entered on the form!), did she transmit from PM? If the post came from PM, then Ann must be there and not manning the lube joint at Spit Junction this week.

    A different ISP address doesn’t signify a new contributor.

    I’m sure that Rob Oakeshott has much better things to do than cavort with Ann! For a start, his young children (including his 6-month old baby) would have better communication skills and thus much better company.

  • Just love a blog 🙂

  • Ann says:

    I am not in Port Macquarie!! If I was I would not be having coffee or sausage with Oakeshott. Happy Easter everyone. Is that good sentence structure? Robert we should launch a class action against MHPS!!

  • Ban Ann & Suz'ann'e says:

    No, Ann, there are no grounds for Robert to join you in a class action against MHPS. The grounds for a lawsuit are uniquely yours.

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