NSW IS GOING GOING GONE !!

NSW IS GOING GOING GONE !!

First we had properties listed, with vendors ready to explore the bounds of the Winter market. We then saw a hasty retreat as Summer campaigns became the preferred option. With house volumes continuing to fall, the property market has responded accordingly, moving from bull%^$* to very bullish. In many instances the market has posted some of the strongest sales ever witnessed and believe it or not, these prices are well up on the 2003 market. The analysis of ‘days on market’, is now a thing of the past as a high volume of properties are being sold in week one of the respective campaigns.

No longer on our property menu are 33 Shadforth Street, Mosman, 37 Cowles Road, Mosman, 43 Bradleys Head Road, Mosman, 8 Countess Street, Mosman, 32 Plunkett Road, Mosman, 4/45 Wolseley, Road Mosman and 313/88 Vista Street, Mosman, which is just over $20 million in sales for the week. The market is certainly enjoying a feast and would best be described as a ‘bonus – fed’ market. It should also be pointed out that the Mosman market is not consistent with others across Sydney, that continue to struggle.

If you thought the price of petrol was high this week, imagine what you will be paying tradesmen in coming years, as NSW continues to lose them to other states. The Sydney median price is $486,000 and the fact is, that Queensland and Western Australia offer better value and much more affordable lifestyles. If you look at the current state growth figures, NSW is running a clear last at 2.3 per cent. Leading the way is Western Australia on 9.2 per cent followed by Queensland on an impressive 6.5 per cent. The median house price in Perth is $315,000 (and that probably comes with a view) and the median price in Brisbane is $313,000.

The state ‘fudge – it’, being released next week, will be compelling viewing. After many years reaping the rewards of a strong property market, the government now finds itself with a $500 million deficit. The property industry can expect a new set of taxes to replace those that have led to weekly rentals which are now at near record highs. Wages simply can’t compete in an environment where investors are no longer encouraged to participate. Currently, the only possible way for rental prices to platform, is for those in the rental market to continue their migration to other states where investment is encouraged. With the benefit of hindsight the Vendor Exit tax could very well be the silliest tax ever initiated by a government. Long after its abolition, the investment property market continues to struggle at the expense of those in rental properties.

The merchant bankers have to remain in Sydney and this is good for the Mosman market. One must agree however, that the departed Bobby “Dazzler” Carr and Morrie “I’m sorry “ Iemma, have masterminded the art of turning a big business into a small business. Cheers ^__^

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