Standing Ovation

Standing Ovation

The applause in the Sydney property market this week reached a crescendo, with announcements by the Reserve Bank of Australia about the state of the economy, and the much awaited release of Jonathan Chancellor’s ‘tell all’ book about what really happens in the pantry of Sydney property. With the Sydney property market nearing the final curtain for 2002, the orchestra is very much up-beat as it plays the re-mix version of ‘I will survive’, which has left many ‘dancing in the streets’. Next year’s interest rates, will in all probability be as low as a touring English batsman’s Test batting average.

At a dinner this week the man who pulls our purse strings revealed, whilst discussing ‘Monetary Policy in an Uncertain World, with those in attendance “When we come to monetary policy more generally, and we look around us at the challenges facing central banks in other countries, we are reminded that decisions are never easy. But if ever I am tempted to regard the Reserve Bank of Australia’s task as difficult, I quickly banish such thoughts when I look at the task faced by our counterparts elsewhere. I do not think any of us at this time would wish to trade our economy for another, or our monetary policy outlook for that of any other country of which I am aware”. It certainly has been a busy week for Mr. Macfarlane, especially with the unprecedented 2003 forecast earlier in the week that interest rates will be locked at their present low levels until well into next year, and could be cut if the world economy sinks further.

It was only a month or so ago, that the Reserve Bank was indicating a shake-out in the property market. This then turned into a stake-out by buyers who then became as active as a Carr Government policy announcement. I will get onto that a little later!! What we are really seeing is a united front from the powers that be, who are sending out a very clear message, that the real estate market is very much a protected species. It is imperative that this market continues to perform, for our economy to remain positive and progressive. What we now know, (and we have never before witnessed such a market strategy) with the release of this information, is that real estate will play a dominant role next year, and without a shadow of a doubt, the New Year property market will be bullish with plenty of testosterone. This also paves the way for an interesting conclusion to the 2002 market, as we are now seeing many hedging their bets as they see the market climbing to even greater heights, with the current market still offering a window of opportunity.

The Carr Government promised last year that radical changes would be implemented to curb some of the unethical behaviour patterns of some real estate agents, which would come into force this year. Like most of the promises they are still very much on the popular ALP white board. It was only when an investigative report was published in The Sunday Telegraph revealing that the practise by these agents to underquote auctions, was widespread across Sydney. Once again the Government announced that the legislation would come in next year. This was the first time that I have ever witnessed agents being outed, and I applaud those who compiled this report. Once they get tired of staking out the east, we welcome them over here when they write about the over quoting to vendors. We have had some great ones this year. I remember one waterfront was on the market for $9.650 million, to be later sold for $4.320 million, and there are a couple of interesting ones at the moment where agents have indicated double digit sales. Mosman has had just the one double digit sale, and I really can’t see it changing from that, not in the short term anyway.

On Monday evening it was canapes and caviar for the launch of “The Sydney Hot Property Guide” by Jonathan Chancellor, aka Title Deeds. The inaugural release about the goings on of our property industry, and I must say it is a brilliant read. With 125 suburbs covered this really is a must for your bookshelf, as never before has the Sydney market been covered with such depth and accuracy. At the opening I observed some blushes and flushes, and I still can’t work out how the Eastern Suburbs agents can talk and drink, with all those olives in their respective mouths. At a RRP of $21.95 you will make plenty if you follow the paths of those who have made millions from renovating houses.

From reading too much into the market, to now reading all about it!! It could be argued that now the ‘penny is starting to drop’, when it says in the book ‘If Monopoly was a Sydney board game, then Mosman would be Mayfair’. I’ll drink to that, cheers and clink…^__^

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