The Mosman market was back in the spot light this week for all the right reasons with speculation that a $20.500 million sale had been transacted (we were not the selling agents) with a local resident acquiring the two adjoining properties. Speculation continues that the intention is to knock down the existing residences and construct a new home by amalgamating the sites. Debate continues as to whether or not this is the new record for Mosman as some argue that (our) the previous record of $15.500 million was for one single residence, and the rumoured new sale is for two adjoining properties. You can be the judge on that one. Interesting to look at these properties on a per square metre / dollar ratio – $15.500 million 1986 square metres, 2001 sales date $7,805.00 per square metre. Burran Avenue $20.5 million (unconfirmed) 2,134 square metres, 2005 sales date $9,606.00 per square metre. Using that analogy, letter boxes in Balmoral are sitting on $10,000.00 worth of prime real estate.

Well it was the end of the financial year for many yesterday, so as quick as a flash we were off to compare our 2005/2004 results with those of 2004/2003 to see how we fared. The general consensus is that the property market has cooled off, Vendor Exit tax has chased investors away, Stamp Duty on properties above $3,000,000 attracts another 2 per cent (7 per cent), and nine years on the property market is all but exhausted. So let’s look how we went:

Total turnover houses and apartments 2003/2004 to 2004/2005 … increase of 25.7 per cent

Number of house sales 2003/2004 to 2004/2005 … increase of 37 per cent

House combined values (each property) 2003/2004 to 2004/2005 … increase 22.65 per cent

Average house price sale in 2003/2004 $2,337,640

Average house price sale in 2004/2005 $2,377,737 !!

Number of apartment sales 2003/2004 to 2004/2005 … increase 76 per cent sales

Apartment combined values (each property) 2003/2004 to 2004/2005 … increase 81.25 per cent

Average apartment sale 2003/2004 $668,140

Average apartment sale 2004/2005 $647,517

Property Management total properties … increase 23 per cent

Internet traffic up 38 per cent on 2003/2004

Virtual Realty News subscribers … increase 19 per cent

That, ladies and gentlemen is why we have been up-beat in 2004/2005 because we run a completely different business!! As we have said time and time again, the real estate industry has changed. Kalamazoo is out and computers are in !! The interesting part now will be to see how quickly the slower agencies move to stop the pioneering agents from getting too far ahead …. the race is now well and truly on given that the market has changed and agencies can no longer fly under the radar. You can hide in a booming market, however today, vendors are wanting to see first hand, what technology is driving respective businesses and how it is being implemented. In coming weeks we will be rolling out two new electronic extensions to our business, “Virtual Realty Results” and “Virtual Realty Requests” which are another first in our industry.

As predicted last week we were in for a hectic time and a gold star to Richard Simeon who exchanged, yesterday, properties with a value of $15,800,000. No longer available are Cyprian Avenue, Iluka Road, Esther Road and Kallaroo Street. Our highly talented Apartment Division had six exchanges this week with a few investors getting in before the 30 June deadline. It was a $24,600 million week!

Our close mate Bobby ‘Dazzler’ was at it again today with a massive 450 state taxes getting a touch-up. You name it and it is up, and if you are in for a spot of recreational fishing this week end your licence too, went from $25.00 to $30.00 a year. Andy Re-assure me (Dazzler’s treasurer) said this week that the biggest factor affecting the property market was the increase in interest rates and further speculation of future rises. Most are of the opinion that given the cost of petrol, interest rates will remain untouched for the next twelve months !! Nice one Andy, obviously he still subscribes to No Idea !!

With nearly all of our agents heading off to Mascot for a well earned break, Marize is currently in Hawaii. We stagger the staff over this month and we are ready for new marketing campaigns in August, where we have some great property ready for launch. Some agencies might use this month to re-assess their business strategies. If you ignore technology, eventually vendors will begin to ignore you!

Cheers, and we just love it when a plan comes together ^__^

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