Mosman Market

Mosman Market

Up, up and away!!! The Mosman market has proved yet again that it is not for the faint hearted. No other Sydney municipality came within an agent’s roar, with the latest figures revealing the median price of Mosman property soaring to $1.71 million. With our much loved Labradors, proving much more popular than the Poodles of the Eastern Suburbs. Next best was Woollahra with $1.01 million. It was not that long ago when only few dollars separated Woollahra and Mosman, now the difference is by a ‘Mosman Mile’ given that Mosman is the market barometer. Mosman property prices have jumped 33 per cent from the March quarter last year when $1.29 million was the recorded average. Now if this presents you with a conundrum as to how you are going to play the property market, here is a little gossip that I heard yesterday in light of the announcement of the latest figures. The banks, which for obvious reasons have remained ‘tight-lipped’ about how they see the market, are predicting it will run for at least another three years, and in that time we should see a thirty plus percentage growth in property. The banks believe that the property market would need to see a four per cent rate rise, or another fifteen rate increases based on the last rise before it will come to a ‘Keating halt’. I think we would see an impeachment before that would come to fruition!!

Aside from the obvious, why is Mosman at ‘Waterhouse odds’ to be knocked off the mantle as Sydney’s top suburb, actually Australia’s for that matter? Well, it is quite simple, ours is an intellectual market based solely on driving the individual wealth base. “Please explain?”

Well one of the major players, if not the major player, is ‘The Millionaires Bank’ – Macquarie Bank, I love that nickname. From back in the early nineties our market was driven by two phenomena. In March, Bankers Trust would hand out their bonus cheques, and in August, Macquarie Bank would follow suit. This was actually the saving grace for our ailing property market over that period. Today, BT is not as big a player and has been replaced by ‘da boys’ at Deutsche Bank, followed closely by PricewaterhouseCoopers and JBWere. The city lawyers have played and adopted a ‘the jury is out’ mindset, which explains why the Clifton Gardens market trades so infrequently. The ‘Cisco Kids’ rode into town, some stayed, and others left, as did the IT industry. Thankfully most of them were in rental properties, although a few landlords would argue differently.

Today, the property market is more dimensional. The Internet is a huge player and in the month of April alone, the three big property portals; domain.com, realestate.com and property.com shared nearly two million page views for the month. When looking at those statistics, it shows just how big rwm.com is, considering that we are just a single web site. Agents are changing their marketing philosophies and some have now even been seen getting out of their cars to take the pictures. Whatever the case, the consumer is offered a much better service today, compared to a few years ago.

As we enter the winter selling period you will notice a few new abbreviations being offered in the auction results, VB and W. Not Victoria Bitter, ‘vendor bid’ and ‘withdrawn’. This is more of the agent’s doing than the market, as vendors are holding them to the opinion of value that they suggested at the time of listing. It will be very interesting to observe what eventuates over time and what the property gets sold for. Some could be less than the VB, which may be when the vendors could be overheard saying “I’m in the mood for one now!!”

The breaking news of a home in Hopetoun Avenue selling this week for a reputed $9.5 million, only confirms that the market still has plenty of play in it. I must admit I expected the first number to be a one. Actually, I am now more determined to post the next double-digit sale. We have some fantastic properties to offer over June and July and yes, we want to see Mosman average hit $2 million, which could very well happen with stock levels dropping at such a fast rate. Whatever the case, the figures and statistics clearly identify that real estate is by far and away the leading investment opportunity. Where else can you pick up 33% in twelve months and not pay tax??… ^_^

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