I – spy something starting with G

I – spy something starting with G

First the global financial crisis (GFC), then Great Depression Two, then Google and now our economy, Graduating with flying colours. The Spring/Summer real estate market will bear no resemblance to the one we experienced twelve months ago. The GFC has brought about many market corrections in property prices, interest rates, wealth and public perceptions. Our share market has just posted three days of strong gains so it is “steady as she goes.”

I have said it before and I stand by my previous comments, that in the recession of the early 1990’s, there was no Internet and no electronic information highway that today, has played a dominant role in the recovery process. When we look at our print spends with Domain North/Saturday Domain and the Mosman Daily/Cumberland – 1 July 2007 to 30 June 2008 and 1 July 2008 to 30 June 2009 the expenditure was twelve per cent less in the last year. In the GFC, if we break this expenditure down from 1 July 2008 to 31 December 2008 and 1 January 2009 to 30 June 2009, the expenditure with Fairfax and Cumberland is down 39 per cent (approximately). This reflects vendor concerns with print which, when compared to online advertising, is much more expensive.

Tim Mooney Photography – Bungan Head


2 – 4 – 6 – 8 dig in don’t wait! The online real estate market received a major wake–up call last week after Google entered the Australian online real estate market. The online manoeuvres have been most impressive as institutions (real estate agencies/ Head Offices) compete to grab and take advantage – only to learn that location, location, location is not that simple and can be short-lived. The Google Maps release (designed here in Australia) is strategically designed to keep real estate enquiries under the one Google consumer umbrella. We have attached a property portal survey that only takes about thirty seconds to complete http://aussierealestateportals.questionpro.com/ Your participation would be very much appreciated.

Having said that we have no plans to depart from www.domain.com.au and www.realestate.com.au However, like every business, we will continue to monitor online eyeball enquiries from these property portals. The Google Maps release is great for our industry as it challenges the Domain and REA business models – better known as ‘competition’. At this point in time, Domain and REA have refused to allow their respective pages to appear on Google Maps, although both remain huge advertisers on the Google pages with Google AdWords.

Whilst the announcement was hush–hush, the serious online real estate agencies were laughing as years and years of dedicated work were finally being acknowledged on Australia’s number one search engine. For example, when one is searching Google for Mosman real estate, the agency that appears on the first page has a definite advantage. Unless you are prepared to pay for Google AdWords which cost per enquiry, the other alternative is to grow your online business organically by feeding the search engine’s online content.

For example our website now, has approximately 1,800 pages (and growing) of content. Simply put: the smart online agencies have positioned themselves to capture these online markets (Google) for the benefit of the clients they represent – both rentals and sales. Type Mosman into a Google search and guess which agency appears first? And which agencies fail to appear!

It would be reasonable to assume that for the moment it is highly unlikely that our cash rate will fall below 3.00 per cent which is a positive. The United States, United Kingdom, Japanese and European economies are at zero or close to – which denies further interest rate stimulation to these central banks. The defining moment will happen when the June quarter national accounts are revealed in just a few week’s time (just before the Spring/Summer market sales). Whilst it is possible that the June quarter may return a negative result – it is highly unlikely. The overall consensus in the market is that property prices have bottomed but, (always a but) this will depend on the volume of property available for consumption.

The X factor will come down to the banks and the properties they have quarantined until the market recovers which is exactly where we find ourselves today. Factors beyond our control however, real estate has always embraced the X factor. Just as compelling is a real estate market barometer and last week’s auction clearance rates – Sydney 70.5 per cent, Melbourne 82.1 per cent, Adelaide 79.2 per cent. Very high, particularly in a school holiday period. Clearance rates are a fantastic Litmus test and we will be watching them closely through to Christmas.

Again the recovery compass is dependent on the June quarter figures that identify how simplistic economic measures are. After the negative December quarter figures, the March quarter which was expected to confirm a technical recession, saw that quarter return a positive result. Given the data we have been reviewing, it would be an amazing turnaround for the June and September quarters to produce consecutive negative results – alas a technical recession again. Highly and most unlikely, although some schools of thought are that our cash rate will hit zero and property prices will fall by forty per cent.

It is now time for me to take a short break, based on my belief that Virtual Realty News has saved our economy from recession. My equally responsible next task is to remove that much publicised bar mat from the Aussie Bar on Patong Beach, Phuket. A difficult and dangerous assignment, yet I am confident that I am up to it without damaging international relationships too much.

In my absence, editions will be brought to you by Steve and Richard who will no doubt express their views on the market with relish, sentiment and satire.

Tim Mooney is having a clearance sale for his brilliant collection of Sydney Waterfronts – from Bondi to the bridge. Can’t believe how cheap they are and that includes delivery in Sydney. Limited stock available swbook1.

Bon voyage ^__^

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales www.rwm.com.au/news/

4 Responses to “I – spy something starting with G”

  • great update esecially on the google map and surprise surpries I receieved a offer from Yahoo for 3 months free advertising maybe they had lost the plot !! WELL DONE AGAIN FOR KEEPING US UP TO DATE

  • Thanks Pete,

    Google is just smashing them and taking most of the traffic. Try http://www.bing.com which has just been launched and will challenge Google most I believe. Very important for a business to be up to date as I am seeing plenty that are out of date 🙂

  • Gordon says:

    Never mind that bar mat at Phuket – just don’t take a boogie board cover to Denpasar. . .

    As Peter says, great update and it is always very refreshing to get your weekly assessment which simply tells it like it is. Have a relaxing time and I hope for your sake that you will be out of mobile range!

  • Thanks – Gordon have not been to Denpasar in years and after what just happened in Jakarta no plans to visit Indonesia ever again. Thailand is much safer and I just spoke to a mate whio has just returned and the Aussie Bar has sold out of bar mats – grrrrr! Ever since the Australian woman was arrested everyone wants one. Phone is always on and in range which is part of job 🙂

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