NOTHING TO ‘WHINE’ ABOUT!!

NOTHING TO ‘WHINE’ ABOUT!!

Bobby “Dazzler” Carr may no longer hold the political spotlight – however it is great to see that the W A Chamber of Commerce is still influenced by some of his economic hypotheses. In what can only be described as an extraordinary sequence of events, the “Governor of Moolah” was asked to lift interest rates this week because the WA economy is booming. Obviously, its request was denied although we would suggest to the W.A. Chamber of Commerce that next time it makes such an absurd request on behalf of fellow Australians, it annexes the latest wine review, especially those of the red variety. Our very own “Governor of Moolah” was observed last night spending considerable time at the Cremorne BSW (bottle shop) investigating the State’s appealing fermented juice of the red variety. From a distance, it appeared that the Margaret River was slightly ahead of the highly fancied Perth Hills.

The W.A. Chamber of Commerce has further contradicted itself, as dwelling approvals released this week, identified a fall in W.A. of 8.4 per cent in the month of May. South Australia posted a 34 per cent drop so we can expect its Chamber of Commerce to file for a decrease next month. Rises were recorded in Victoria, up 21.5 per cent, Queensland, up 8.5 per cent and New South Wales, up 6.1 per cent.

At the beginning of a new financial year, part of the Australian culture is to immediately take a vacation. This makes sense if you look at the latest figures from Home Price Guide which indicate that house property prices in the twelve months to July 1, 2006 in Mosman have shown a zero per cent movement. We would expect this to change soon as Mosman, in the month of June, posted an unprecedented volume of top-end sales. The average price for a Mosman house is $1,937,000 with the median price adjusted to $1,700,000. Apartments continue a slow climb, recording a four per cent increase with the average price now being $627,000 and an adjusted median price at $500,000. As we predicted (with some debate) we are of the belief that apartment prices in Mosman have bottomed.

Neutral Bay houses now have an average price of $1,030,000 and the adjusted median price is $995,000. Overall, this is a one per cent change over the twelve month period. Apartments in Neutral Bay fell three per cent with the average now at $520,000 and an adjusted median price of $496,000.

Cremorne appears to be a touch more volatile with the median price dropping eight per cent for the twelve months. The average price for a house in Cremorne is $1,299,000 with an adjusted median of $1,034,000. Apartments, in Cremorne increased by three per cent over the twelve month period with the average now coming in at $606,000 and the median at $509,000.

Last but not least, Cammeray recorded an average house price of $955,000 with an adjusted median of $878,000 which is up three per cent over the twelve month period. Apartments now average $546,000 and the median price is $494,000 which also represents a three per cent gain. These results are pleasing and all but confirm that prices are in a holding pattern and a rise in interest rates would have little to no effect on our property markets. Rather, our markets are more sensitive to merchant bank bonuses which are what prompted the bullish run last month. The key to our market will forever be based on market supply and in Mosman, sales are rapidly declining (compared to activity in previous years). Mosman prices are much like a fine red wine. They get better with age !! Cheers ^__^

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