STILL A VERY SWITCHED-ON MARKET!!

STILL A VERY SWITCHED-ON MARKET!!

We find ourselves at that time of the year when the days are getting shorter, fewer and fewer properties are on the market and editions of “Virtual Realty News” are getting shorter. The property market has moved to the electronic form of marketing, and for the moment, is quite content to remain there. Many agents (to add to the confusion) have reported record sales for the month of May which further contradict the traditional form of property marketing.

This week we reached a huge milestone at RWM when we recorded our 256th Internet sale. Subscriber sales now total $501,171,600! We would argue with great passion that this is an Australian record. More interestingly, is that previously, it would (on average) take a calendar year to post $100,000,000 in subscriber sales. In 2006 we recorded $100,000,000 in just under six months. It is gratifying to know that the business model we developed confirms that purchasers and vendors are more than comfortable with the electronic form of property marketing. We believe that we will always have colour print advertising however, from an economies of scale perspective, online is fast becoming a preferred option (more particularly in stage one of a marketing campaign). Then, if vendors have not achieved the desired result, they are more inclined to move into a full-blown advertising campaign.

What is certainly assisting vendors is that with fewer and fewer properties now for sale in a calendar year, Mosman is well on track to fall below 200 home sales in 2006. We had 445 in 2001 and 495 in 1995! These numbers indicated that Mosman, with around 4900 homes, traded on average, at ten per cent per annum. Today, we have anecdotal evidence that it is now trading (on average) at five per cent per annum. We are certainly not looking forward to an edition where it is two per cent per annum, because should that happen, property prices will triple!!

Not many noticed that just over a week ago Google launched its long awaited street mapping data for Australia and New Zealand http://maps.google.com This is what many believe (as we do) will be the new look in property portals. When Google do launch this property portal, it will be very interesting to see what the look and feel of the site is. With its search engine, it prefers a simple look with no picture advertisements, just text boxes at the side with a simple and clear interface.

If you want to see how Google has changed property portals in America, take a peek at http://www.housingmaps.com and wait for the page to load. It is very different from the Australian property portals that tend to defer to a clothes line mentality where they sell every available pixel to anyone who wants to advertise on the respective website. Watch Google change that online mentality when it successfully launches into the Australian property market. Advantage agents and vendors !! Cheers ^_^

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