NSW IN DECAY – BUT PROPERTY STILL OK !!

NSW IN DECAY – BUT PROPERTY STILL OK !!

Finally, there is some method to the madness in the way Bobby Dazzler runs his ‘State of Decay’ with his decision that NSW is to remain Australia’s most heavily taxed state. By adopting an economic strategy that is forcing more companies to re-locate to other states, the ‘Dazzler’ obviously believes this could be the very answer to solving the problem of falling water levels. By severely reducing the population of NSW, water consumption levels will not reduce as rapidly which, in turn, puts a positive spin on our water supply problems. Whilst standing on a platform (where the train is also running late) the NSW government still believes that stimulating the economy with tax-reform, is not the way of the future. One can only guess that other states, where investment and economic growth is encouraged, are becoming too much of a magnet for many companies.

Time to have a peek at the property market and look at its progress for the twelve months to June 1, 2005 as provided by Home Price Guide. Mosman average house prices for the twelve months sit on $1,896,000, the median is $1,625,000 which overall is a three per cent increase. Home unit prices average out at $595,000 and the median is $475,000 which is a one per cent drop for twelve months.

Neutral Bay, recorded an average house price of $1,528,000, the median is $1,013,000 which for the twelve months is a ten per cent increase. Apartments in Neutral Bay average out at $591,000, with the median price coming in exactly on $500,000 which identified a zero change in prices over the twelve months.

Cremorne houses averaged out at $1,300,000 and the median was $1,100,000. Overall an eight per cent drop. Apartments in Cremorne averaged out at $583,000, the median was $500,000 and that came back as a two per cent drop.

Last, but not least were Cammeray houses that posted an average price of $1,057,000, the median was $950,000 and prices dropped just one per cent over the twelve months. Apartments recorded an average of $545,000 and a median of $485,000 – a drop in price of just one per cent.

Whilst transaction costs remain so high, including the 2.25 per cent vendor duty back-door fine, we will not see any significant changes to the property prices in the foreseeable future. Given that investors still continue to have apartments on their ignore lists, this is an interesting pattern. Mosman -1 per cent, Neutral Bay zero change, Cremorne -2 per cent and Cammeray -1 per cent. Rents are in increase mode, vacancy factors are at historical lows and prices have had minimal adjustments over the last twelve months. I therefore, give the apartment market a ‘buy’ recommendation. This is now consistent with the exchanges that are taking place in our Apartment Division and a great result, given that they have to contend with policies that discourage participation.

The days are getting shorter and so are the editions, as very little is happening in the housing market. Just one week to go before the end of our financial year and we have the ‘pedal to the metal’ to clear a few more homes. Watch quite a few more disappear from the property menu before next week’s edition. Cheers .. ^__^

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