MISSING IN ACTION – THE PROPERTY BUBBLE!!

MISSING IN ACTION – THE PROPERTY BUBBLE!!

Whilst some are of the opinion that the Sydney property market is now in ‘Home Alone’ mode, they are one hundred per cent correct as the July property market is always a month when Sydneysiders take their mid-year holidays. If you tried to book an air ticket to Bali today, you would be arriving there via Singapore. Some have compounded their confusion by suggesting that the foundations of the real estate market are shaky and showing signs of wear and tear. One estate agent on the other side of the creek has just amassed $100,000,000 in sales in just a three month period, which would be an all time Australian record. The top-end of the market has never been healthier. We are of the belief that we will see some very strong trades in the up-coming Summer market, although much will depend on a Federal Election announcement.

With our ‘Governor of Moolah’ deciding to leave the rates alone for the seventh consecutive month, it will be the building approvals that he will no doubt be monitoring closely. The approvals for apartments and units have jumped seventeen per cent in the last two months, which clearly identifies that the confidence in the property market is back. Today, what is really missing in action is that word ‘bubble’, you know the one that nearly everyone suggested would burst and cause mayhem. Those who suggested that no such thing ever existed, can now certainly have the last laugh. From our perspective, there were two major occurrences in the June quarter, namely record low clearance rates which led to the abolition of public auctions, secondly the ‘Governor of Moolah’ came out and blasted the methodology applied to collecting property data, as ‘hopeless’. It is quite noticeable that those who represented these data collection companies and always had an opinion on the market are now property recluses, for very obvious reasons. It was a simple case of what we were reading, was not happening. After all it is the agents who actually stand at the coal face.

One of the very few property actions that can be measured is that of the “unique visitor” to a web-site. In the last five years the Internet and real estate have consummated a perfect marriage. Today, 1,600,000 people search the Internet looking at properties each month and many subscribers were amazed at the data we posted in last week’s edition. The Internet and property really is big business today and everyone is aware (well, nearly everyone) that it is only going to get bigger and better. Wait until you see our new web-site which is under construction. I have banned drop down buttons, I believe it will again identify why we are at the forefront of IT development in our industry.

The property market today is highly competitive and still totally attractive to the participants. With the only significant change that we foresee is that prices will continue to climb, with much reduced volume. For those confident that first-home affordability is well and truly on the way down, think again! Our apartment division has eleven properties out to exchange, and this market is as strong and competitive as any we have experienced in quite some time. Twenty-five per cent of these purchasers are investors, which identifies that “Bobby Dazzler’s”, new whacky tacky taxes are not having a serious effect on this market. The investors are simply saying “well he is in his last term”.

The one positive thing that can be said of the property market today, is that it is better to be criticised than ignored, although those who were very critical of it are now being totally ignored. I’ll have a drink to that … Cheers and clink !! ^__^

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