Reading between the lines!!

Reading between the lines!!

The Sydney real estate market today, reads like the chapters of a book. Last week we reported that, based on figures released by, Mosman house sales for 2006 were 233. This week, that number jumped to 247. However, if you look at the figures, they have Mosman sales at 293. This is up on the sales figures which indicate that in 2005, Mosman recorded 289 house sales. If you look at the number of houses currently for sale in Mosman, you will see approximately 130 listings. Now it gets interesting, as the volume of sales should, given the current market conditions, get very close to the 376 sales in 2003 (and that was a peak market performer).

Just as interesting are the latest figures released by Australian Property Monitors that have the average house price in Mosman at $2,025,000 with the median price now $1,750,000. This represents a 4 per cent increase in the median price for the twelve month period to 1 October 2006. Residex lists the Mosman median price at $2,008,000 which is well up on the 2005 median price of $1,866,000. Based on this data, Residex has predicted that Mosman houses will experience 10 per cent plus growth over the next five years. This week (true to form) we sold $21,287,000 which clearly indicates the strength of the current market, as long as you get the valuations correct. Subscriber sales now sit at $534,014,000 !!

The only people in our market not buying, are the investors, the current trend being more leaving the market, than entering. The latest figures released by the Real Estate Institute of NSW reveal that the vacancy rate today stands at 1.7 per cent which is the lowest ever recorded. This is well under the previous low of 1.9 per cent and rents continue to increase with the median rents outpacing the annual four per cent CPI. With such a strong rental market, investors still prefer to watch rather than participate. Apartment yields are presently just under five per cent and houses around three per cent which is the highest in years. We view the current rental market with concern as it obviously contracting when it should be in expansion mode. If the pattern continues, certain sections of the market will be in crisis, as demand will far exceed supply. Already, over a twelve month period, some suburbs are posting 20 per cent plus rental increases. Before Mosman landlords start screaming down the phone, in 2006 Mosman rentals have had on average, a 10 per cent increase. The highest increases have been recorded at Whale Beach which has posted 36.59 per cent median growth over the last twelve months.

Great news that you can now view Saturday Domain, Domain North, Domain East and Domain Inner West online at (click on real estate) Well done Fairfax. Very smart technologies including property articles with voice functionality.

Not to be outdone, just introduced a very innovative, interactive map, that highlights ‘sold’ properties by suburb. This tool will be very popular in the marketplace as prospective purchasers and property owners can keep right up to date with sales data in their chosen locations. It is not just property prices moving forward !! Cheers ^__^

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