Market Finishes with Encore Performance !!

Market Finishes with Encore Performance !!

Whilst the local market will soon become distracted by the holiday season, the Expat market is heading home for Christmas. Because of our large Expat database (41 countries), each year we set up a special service for our Expats heading home for the holidays. Our goal is to save Expats time and minimise the hassles of house hunting with our exclusive and innovative Christmas Break House Hunt Service.

Here’s how it works… We are asking all house-hunting Expats who are returning to Sydney in December and January, to contact us in advance to ensure that inspections can be arranged.

If you are a local subscriber and would like to add your property to the Expat Inspection List, please call our office on +612 9969 7622

Yet again, year in, year out, the property market performs. Although, like most things, occasionally it stops for a breather. 2005 was another example of another strong market (we are talking about the Mosman and Eastern Suburbs markets) with the last few months exceeding all expectations. November transactions broke our all time record and December could very well surpass that new record. This week we have managed to exchange $24,905,000 in property.

Whilst on records, “Merdjayoun”, one of Mosman’s largest private estates sold this week for $11.8 million which is a new Australian record for an under the hammer sale. The previous under the hammer record was 38 Olola Avenue Vaucluse which sold in February 2004 for $9.500 million. “Seacliff” the Burran Avenue clifftop residence which sold in April 2002 for $8.800 million was Mosman’s previous under the hammer record holder.

The successful purchasers of “Merdjayoun” (an expat family) were introduced to the property by Michael Dunn from Richardson & Wrench Double Bay and our very own Stephen Patrick. They saw the property previously, through our marketing campaign and were nominated in writing prior to the auction on Tuesday evening, as per the vendor’s solicitor’s instructions. Maybe the fact that the person bidding on behalf of the purchasers was on Michael Dunn’s phone during the auction, might leave an even bigger clue and in fairness, we were the only ones with their phone number !!

It was interesting to read “Title Deeds, Top Sydney House Sales in 2005”, that appeared last week in The Sydney Morning Herald, Saturday Domain. For those who missed it, here it is again If you include this week’s sale of “Merdjayoun”, fifteen homes managed to join the double-digit club (which is down on the 21 recorded sales last year. Title Deeds reported that there were 10 in 2002 and 9 in 2001. Mosman, and Cremorne managed to post seven sales. The real shaker and mover is the Palm Beach and Whale Beach market, posting four sales. The highest recorded sale in Mosman in 2005 was the $14.75 million dollar sale in Hopetoun Avenue last month. There was a sale at 4 Burran Avenue in June for $14,000,000 with the adjoining property at 6 Burran Avenue for $6.5 million which (combined) totals $20,500,000. I am of the opinion that these are individual sales as they are on separate titles and as we hold the record of $15,500,000 we can afford to be biased on this matter. It was interesting to note that this year’s cut-off was $6.5 million which was up $400,000 from the previous year.

So, what will happen to the property market in 2006? Well, nobody knows and as in previous years, we just turn up and do our best. We believe that we will possibly see no movements in interest rates as next year the “Governor of Moolah” completes his “record equalling” term at The Reserve Bank. As in past years, we can expect a few ‘thrills and spills’ along the way and already we are reading some chilling reports. In last week’s report of the “Eureka Report” one particular article by Patrick O’Leary caught my eye, it was headed “Markets’ Wave of Fear”. Here is what he said, ” PORTFOLIO
POINT: The Elliott Wave is one of the most influential market theories among professional investors. It has ‘called’ some of the most important events in recent years, including the 1987 crash and the 2000 NASDAQ -led decline. Now it is predicting a very severe fall in the US equity market by March 2007. You don’t have to believe the Elliott Wave Theory, but you should know what it means to the investment market; if nothing else it reminds investors not to place too much emphasis on shares in any investment portfolio”. Source
Sounds like a compelling reason to back ‘bricks and mortar’ again.

Our Internet sales jumped this year to $416,326,000 which further identifies how quickly the real estate market is moving to online. Next year, you can expect to see the IT savvy agencies experiment with new online marketing campaigns given the high costs of print media. Google will probably be a dark horse in property marketing as nobody outside its inner circle is aware what plans it has for 2006 and beyond.

No longer available on our property menu this week are 15 Rickard Avenue Mosman, 7 Glencarron Avenue Balmoral, 40 Wolseley Road Balmoral, 85 Belmont Road Mosman and 30 Victoria Road McMahons Point. As we predicted, it looks like the property market will continue trading all the way to Christmas.

This is our last edition for 2005 and we thank you for all the fun we have shared throughout the year. We will be back with our first edition in 2006 on January 27. So until then, have a wonderful and safe Christmas and one very big and happy New Year!! Cheers ^__^

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