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We keep hearing when the “going gets tough the tough get going” so you could be excused from thinking anytime soon that our luck has changed (for the better). A stark reality of the global financial crisis (GFC) has been the over reliant business concept where the hope factor remained the dominant strategy moving forward – trying hard and out of luck. No better example than that of our politicians where today, their decision making process is directed by polls as against policies.

The GFC was actually a great measure for businesses and governments although they responded in totally opposite directions. Businesses paid down debt and governments amassed debt which should not come as a great surprise as one is personal debt over other people’s debt. As a result of the GFC two words spring to mind: communication and infrastructure which is what I believe will be the key business strategies moving forward and succeeding in 2011 and beyond.

In that perfect world put simply: if we have every intended purchaser and vendor on our database (communication and infrastructure) we would be one of the most successful businesses on the entire planet – today we (most) strive in business to deliver the perfect consumer model. Just another part of life’s ongoing business challenges – so many businesses ignore and fight online which is now our future. No point fighting it – work it, use it and more importantly dominate it as it reciprocates one hundred fold (plus).

BUY PRINT

Our thanks to Tim Mooney for again spoiling us in 2010 with his amazing aerial captures which are simply breathtaking and most often mind boggling. Many subscribers contacted Tim throughout the year requesting aerial shots of their respective homes – they make for sensational Christmas cards.

Another fascinating year in Australian politics – a federal election, hung parliament, cross deals, resignations, scandals and the sacking of the Prime Minister. We pretty well had it all and more. Next March NSW is off to the polls as Fort Crumble limps to its final days make that 19: NSW Labor resignations which is unprecedented in Australian political history. A Christmas wish as Premier ‘Bambi ‘Keneally begs for a second chance despite revelations this week that $350 million wasted on Metro, audit reveals then insisting that when she dumped the Metro  the money had not been wasted. Oh dear!

Congratulations to our very own Steve Patrick and Jacqui Rowland – Smith who posted Mosman’s top sale for 2010 with the sale of Morella Road also the twelfth highest sale in Sydney for 2010. Steve also posted Mosman’s second highest sale when he sold a home in Stanley Avenue Balmoral last month – Mosman recorded four sales in Sydney’s Top 20 sales for 2010. Of interest is that sixteen (16) houses that Richardson & Wrench Mosman & Neutral Bay (RWM) sold in 2010 set new street records – an amazing feat in a difficult market. RWM have posted Mosman’s highest recorded house sales in 2008, 2009 and 2010.

This week we set an Australian record when we posted $1 billion in subscriber sales to our online business which now sits at $1,001,770,228. Our first subscriber sale was recorded in October 2000 when we sold an apartment for $270,000 – our real estate online model is considered an Australia leader within our industry. Nobody really knew what we were trying to achieve when we rolled it out ten years ago – today it is recognised as a leading example for our industry.

MOSMAN HOUSE SALES – 2008, 2009 & 2010 A COMPARITIVE ANALYSES

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• 2008 – Total Value Sold $774,865,612
• 2009 – Total Value Sold $668,966,377
• 2010 – Total Value Sold $692,658,555*

*Still being compiled

• 2008 – Total Number Sold – 360
• 2009 – Total Number Sold – 334
• 2010 – Total Number Sold – 320*

*Still being compiled

• 2008 – Median Price $2,275,000
• 2009 – Median Price $2,000,000
• 2010 – Median Price $2,100,000*

*Still being compiled

• 2008 – Average Price $2,738,041
• 2009 – Average Price $2,397,728
• 2010 – Average Price $2,500,572*

*Still being complied

Source: Australian Property Monitors

What to watch closely in 2011?



Many thanks to the team at Macquarie Research for sharing their graphs with us in 2010

This is your final edition of Virtual Realty News for 2010 and we would like to thank you for your support in 2010. Next year will be our eleventh year of publishing Virtual Realty News and we have plenty in store for you in 2011. With each edition in 2011 we will also be launching a weekly video where we tackle what is happening with our property markets – sure to be controversial (if I get my way.) I will be endeavouring to interview as many interesting people as we can. This will be brought to you by Visual Domain our video partner with Virtual Realty Videos.

Thanks to Ryan and Peter at Agentpoint our online web developers whom I drive absolutely mad with my online impulsive disorders where we constantly dare to be different. You guys are without a doubt the best in the business and an absolute pleasure to work with.

Whilst on videos here is our Christmas video for all of our subscribers (I suggested in last week’s edition that one of our staff was at a recording studio) – it is 100 per cent his voice. So turn your volume – up and click on full screen. Our Christmas video has already been nominated for best real estate Christmas video for 2010.
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As you can see we work with a fantastic team (I think that shows) you would have observed that our family is growing. On behalf of Steve, Rich and everyone else at RWM we want to say to each and every one of you – thank you very much!

Have a very Merry Christmas and a Happy New Year – see you again in 2011 for much, much more.



Cheers (and stop calling me Baz Lurman) ^__^

This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

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10.12.10Robert Simeon15 Comments »

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Next week the nation stops for the running of the Melbourne Cup, so out comes the form guide. Nothing unusual one might say, as it is well documented that Aussies would have a bet on two flies climbing up a wall. I’m not sure if any punters will have a wager as to whether or not the Reserve Bank of Australia (RBA) will hike up the cash rate when they gather to assess the track condition of the Australian economy. On Melbourne Cup day last year, the RBA broke tradition when it reached for the whip and increased the cash rate target by +0.25 percentage points to 3.50 per cent.  When the RBA meets on Melbourne Cup Day we don’t believe the cash rate will move from the current level of 4.50 per cent.

The Australian Bureau of Statistics (ABS) released some interesting data this week that identified how the GFC pushed businesses to the wall – in the two years from June 2007 – encompassing the boom and subsequent bust – more than half a million Australian businesses shut up shop. Nationwide, there was a 73.6 per cent survival in that two years, with the number of businesses falling from 2.07 million to 1.52 million. The number of small businesses (up to 20 employees) fell 24,931 nationally in the period, with more than 80 per cent of the fall occurring during the worst of the financial crisis, in 2008 – 09. It was interesting to note that the majority of failed businesses  employed between one and four people and this is the number where the vast majority of businesses open their respective doors. What you won’t read is why these businesses actually failed which makes one wonder exactly what the Minister for Small Business actually does during the week. Obviously, not very much at all which hardly comes as any great surprise.

BUY PRINT

All eyes were this week on the Consumer Price Index (CPI) figures which came in at 0.7 per cent for the three months to September 30 – slightly up from the June 30 figure of 0.6 per cent according to the ABS. What is clear is that inflation is being driven by rising government charges and not increased domestic demand. As Macquarie Economics Research intelligently pointed out “Indeed, business surveys point to a very subdued inflation in the retail sector, partly due to cautious consumer behaviour. This has also been complemented by Australia’s major supermarket chains, which last week reported flat to negative price growth in the food segment. The point is, if all households are facing rising electricity and gas costs, then this in itself will be a dampener on discretionary consumer spending. And this should lessen – rather than boost – the case for further monetary policy tightening.”

Surprise, surprise, as Fort Crumble – NSW government, has moved to rein in surging electricity prices in a bid to put brakes on runaway electricity prices. Household power prices have already risen by up to 13 per cent this year and within three years, could go up by 42 per cent under power company increments approved by federal and state governments. One of my favourite graphs shows the price changes – so here it is for the year to September where I draw your attention to electricity, health and housing which just so happen to come under the jurisdiction of our elected politicians.

For the year to March 2010

BER projects fail to boost construction which comes as little surprise because construction in schools, bears absolutely no resemblance to housing. Chronic rental shortage a fact of life, says new study as metro areas in NSW face a permanent, chronic shortage of available rental homes. The Real Estate Institute of NSW revealed that the residential vacancy rate fell to its lowest level over the past twelve months, falling to 1.2 per cent. Bear in mind that one third rent, one third own with a mortgage and the final third own without a mortgage. The general rule of thumb a few years back, was 2.5 per cent (that was without population increases) so today it should be over 3.00 per cent. It won’t be that far off when the Sydney vacancy rate falls below 1.00 per cent and that will deliver catastrophic  results. Sydney take note – infrastructure is not a dirty word “The irony will not be lost on anyone who lives here. Because when it comes to infrastructure, Sydney is a town that nodded off for a rest on its laurels and ended up in a 30 – year coma.”

“The nation’s biggest town is spending less on infrastructure than any other Australian capital except Darwin. Compared with major cities in Europe, Sydneysiders know they have been left behind in public transport, high – density residential planning and urban development”. Hence, the funniest story of the week harbour underwater rail option to combat gridlock which is nothing more than an election gimmick given Fort Crumble is paranoid about losing its  AAA credit rating. The last time Fort Crumble honestly embarked on genuine infrastructure was back in 1995 when it won the bid to host the Sydney Olympic Games in 2000. “NSW governments have lost their appetite for major infrastructure construction. The result for Sydney in 2020 is a sub – par rail system, gridlocked weekday traffic, a CBD that struggles to stay relevant at weekends and one of the worst rates of housing affordability in the OECD. Quite simply, Sydney is a city that has lost its ambition. Like a naturally gifted athlete who cannot be bothered to train hard, Sydney runs the risk of being left behind by hungry competitors who enjoy none of its inherent advantages.”

Bugger! Reserve Bank earnings slump to 30 – year low – wow an Australian bank not making billions. The bank blamed the loss of earnings on a slump in foreign interest rates and the surging Australian dollar. Its annual statement, shows underlying earnings last financial year were $866 million which were that low back in 1983. So this year, Fort Fumble won’t be receiving a dividend which is bummer, as  last year it collected a respectable $6 billion windfall.

This week we released our iPad website so whether you are using your mobile phone, iPad or computer, when you type in rwm.com.au you will automatically be directed to your preferred application of use. Another real estate first, thanks to our developers Agentpoint. Infrastructure in real estate is imperative also and no other Mosman real estate agency offers its clients this unique online option of communication and information.

Cheers ^__^

This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

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29.10.10Robert Simeon7 Comments »

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The 2010 federal election is all about the polls (cometh the spin) then three years on, we have more broken promises than promises that actually came to fruition. Neither party has a single blueprint for the Australian economy, nor the nation as a whole and this was classically highlighted during the global financial crisis spend– a– thon which we are told constantly, saved the Australian economy from recession. Australia’s need to invest in infrastructure, is urgent – roads, rail and ports and this is why Fort Crumble faces election annihilation when NSW goes to the polls in March 2011.

Infrastructure in NSW ‘average to poor’ a scathing new report card from Engineers Australia where more than three quarters of the sectors require major or critical changes. This report highlights the point that industry can identify the problems, yet elected governments are incapable of preparing a work – in – progress strategy for Australia. Fix these problems because today our population is well ahead of infrastructure which was brilliantly explained in gotchanomics doesn’t bring home the real bacon.

Labor struggling in key states which led to rolling out the barrel – Labor denies pork – barrel suggestion. Andrew West from the Sydney Morning Herald wrote Back on track – and just the ticket for commuters “It is politically brave for a prime minister to appear publicly with a NSW premier these days. It is crazy brave to make a joint announcement about public transport. The NSW public is so cynical about public transport promises – after 15 years of projects being announced, postponed, shelved and re – announced – that voters no longer believe state Labor can deliver a crucial service.” The $2.100 billion rail link announcement for Parramatta and Epping will no doubt be shelved once Fort Crumble is removed permanently at the next state election – all aboard the PM’s Parramatta express. Who could forget reading How lazy Nathan Rees sold NSW short which explains why Gillard and Keneally fail on Sydney’s transport infrastructure funding. More than half the pledged monies promised in the current election will not be spent until after the next election in 2013 – pork rolled out on the never-never.

BUY PRINT

Surveys reveal that Australia is home to the world’s least – affordable property. Pundits are at odds over whether it might end in a bang or a whimper – a great read Forever blowing bubbles. The Real Estate Institute of Australia recently announced that a contributing factor to the increase in house prices and the decline in housing affordability, is the under-supply of housing. According to the National Housing Supply Council, the gap between the supply and demand for housing will increase in the next eight years and this will put further pressure on house prices.

Nothing new on offer since the houses that Kevin built – “It might be important to voters – but not the parties”, wrote Kevin Saulwick. “There may have been more pressing issues than housing affordability at the 2007 election, but not many. Which makes it all the more remarkable that three years later – and with the same level of community concern about the cost of living – there has been little focus on housing by Julia Gillard and Tony Abbott. When Kevin Rudd sailed into office, it was due to Labor’s success in putting itself on the side of the angels when it came to housing costs. Rudd’s message was simple: he sympathised with families bleeding ever – larger payments on mortgages and rent. And he came to office offering policies aimed at increasing the supply of affordable properties to help reduce the pressures.” The Emperor was de-throned by the Orange Roughie because he had lost his way, then poor polling saw a phoenix – like resurrection to lead Labor to better polling – hence the soap opera.

Housing affordability can come down only with much improved infrastructure policies – Capital city house prices up 18 per cent from last year – ABS even though home loans sink to nine – year low. When infrastructure is non–existent, this leads to construction slumps in July because there is no point building, where there is no demand (especially when NSW has no South West rail link, North West rail link, Parramatta to Epping rail, M4 East and M5 East duplication). If these facilities were in place as promised, NSW construction would be booming and housing affordability and rentals much more affordable. How can Australia “move forward” when infrastructure is moving backwards, compared to our population growth? Policy on the run again as NSW Labor in the dark over Gillard’s Parramatta – Epping rail link promise which has been revealed as the rail pledge a carrot in push for McKew win for the seat of Bennelong – Maxine who?

The last remaining economic data statistic before next Saturday’s election was released this week – shock jobless rise where the three states of major concern for federal Labor – NSW, Queensland and Western Australia all experienced unemployment increases.

Whilst home loans fall as interest rates bite the good news is that the Reserve Bank of Australia RBA statement suggests longer pause given RBA forecasts plenty of blue sky ahead. With the election ‘soap opera’ out of the way next Saturday, we can expect some normality back in our property markets. Electoral promises rarely come to fruition as The Emperor “Kevin 07” found, even though he has been brought back to life – with a faint pulse.

Richardson & Wrench Mosman & Neutral Bay (RWM) has been busy working on our infrastructure and this week, we released our RWM mobile website. Previously with your mobile phone you could view our website with your phone which was a navigation nightmare because it is impossible to view a macro site on a micro application and do justice to our properties. Agentpoint our developers this week launched our mobile micro site for mobile phones users.

Open a browser on your mobile phone and type in www.m.rwm.com.au. Our research and development team are currently testing new technologies, all to improve your RWM real estate experience..
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Online is our real estate industry point of difference, because we are the only agency that gets it – so now you get it. Our clients can now sit outside one of our properties and view it on their mobile phone (outside set inspection times) from our mobile RWM website.

Thanks to Steve and Richard for filling in whilst I was relaxing in our Thailand branch office which is better known (by me) as the Tipsy Prawn.

Cheers ^__^

This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

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13.08.10Robert Simeon5 Comments »

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In real estate we speak about position, position and position. Sometimes when politicians appear on television, their position can be an embarrassment because, although they can talk the talk, they can’t walk the walk! The Emperor (Kevin Rudd) found himself in that exact position when he appeared on Q&A – Monday night on that ABC at Old Parliament House, Canberra. Journalists had an absolute field day (as did viewers) “At the end of the day, the kids caned Kevin on Q&A” by David Penberthy in The Punch (another great daily online read). I well remember noticing this point. “One of the funniest things about the show was how so many of the young people in the crowd smirked in amusement at Rudd’s Ruddisms – “there’s no magic wand”, “but you know something”, and the ever – present “at the end of the day”, and his use of hand gestures and the sweeping arm to explain the scary arrival of the GFC.” He was trying to gild his lily which wilted after approximately five minutes of prudent interrogation by our country’s future leaders!

They say “nothing makes it harder to remember campaign promises than getting elected” and The Emperor would have observed that his Fort Fumble is now under greater scrutiny and attack from all sides. The Daily Telegraph ran the following stories “Kevin Rudd’s 795 days of empty promises” and “Kevin Rudd’s report card: could do better”. A tough week for The Emperor or is it just that politicians make headlines running for something or running from something?

No doubt he will be very fit by the time he takes us to the polls this year given so many empty promises have glaringly emerged with our “economic conservative” Prime Minister. Joe Hockey fared much better as “Giant Tinkerbell” tutu, magic wand and crown.

Surfs Up! As too are wobbegong attacks although I did chuckle when a witness described the shark as a Great White – although these surfers look unperturbed whilst catching waves at Manly Beach

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Tim Mooney Photography

So from politics, let’s move to property and performance where we mark the report card for Cremorne house results from 2007 to 2009 (next week we examine Neutral Bay houses).

CREMORNE PROPERTIES SOLD REPORT – (House and Semi only)

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1 JANUARY 2009 to 31 DECEMBER 2009

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• Total number offered – 91 (Mosman 334)
• Total number of sales recorded – 87 (Mosman 303)
• Total value sold – $157,197,000 (Mosman $668,966,377)
• Public Auction – 25 properties to a total value of $38,727,500
• Private Treaty – 62 properties to a total value of $118,469,500
• Median Price – $1,450,000 (Mosman $2,000,000)
• Average Price – $1,871,392 (Mosman $2,397,728)
• Highest Sale – $13,500,000 (RWM)

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CREMORNE PROPERTIES SOLD REPORT – (House and Semi only)

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1 JANUARY 2008 to 31 DECEMBER 2008

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• Total number offered – 96 (Mosman 360)
• Total number of sales recorded – 80 (Mosman 287)
• Total value sold – $164,864,550 (Mosman $774,865,612)
• Public Auction – 24 properties to a total value of $48,531,000
• Private Treaty – 56 properties to a total value of $116,333,550
• Median Price – $1,650,000 (Mosman $2,000,000)
• Average Price – $2,113,648 (Mosman $2,738,041)
• Highest Sale – $8,280,000 (RWM)

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CREMORNE PROPERTIES SOLD REPORT – (House and Semi only)

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1 JANUARY 2007 to 31 DECEMBER 2007

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• Total number offered – 100 (Mosman 456)
• Total number of sales recorded – 96 (Mosman 412)
• Total value sold – $223,006,433 (Mosman $1,182,372,720)
• Public Auction – 28 properties to a value of $52,452,600
• Private Treaty – 68 properties to a value of $174,861,433
• Median Price – $1,700,000 (Mosman $2,300,000)
• Average Price – $ 2,347,436 (Mosman $2,869,836)
• Highest Sale – $15,000,000 (new Cremorne record)

Source: Australian Property Monitors

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SUMMARY CREMORNE HOUSE PRICES FROM 2007 TO 2009

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Note that for Mosman and Cremorne in 2008 and 2009, the years of the Global Financial Crisis (GFC), Richardson & Wrench Mosman & Neutral Bay (RWM) posted the highest recorded sales for each year. During the GFC, Cremorne traded as usual 2009 – 87 sales, 2008 produced 80 sales and 2007 recorded 96 sales. Mosman bunkered down 2009 – 303 sales, 2008 – 287 sales and 2007 – 412. It should also be noted that Cremorne posted the highest sale in 2009 at $13,500,000 over Mosman $13,200,000 (both vendors are Virtual Realty News subscribers).

So Mosman property and performance was back in the spotlight this week when it made the front page of The Sydney Morning Herald . “No more withdrawal symptoms as bankers again splash the cash” and “A bonus is a must, says the real estate crowd” . I would add that our 2010 market is too early to call – a key clue for subscribers to our daily email alerts will be our under offer and sold alerts – our website is now the Mosman sales barometer.

Peter Martin from The Sydney Morning Herald sent another warning to The Emperor when he wrote “Interest rate rises in Labor hands” – “The head of the Reserve Bank has held out the prospect of continuing low interest rates, as long as Labor sticks to its pledge to restrain spending.” Which is highly unlikely in an election year although I did chuckle when I read, “Joyce link between rates, ‘gross over-simplification’, says Henry”.

Somewhat ironic, with the Reserve Bank of Australia (RBA) saying that Labor again accumulated debt and the Howard regime paid it off in seventeen years of unprecedented economic growth. This again points me to the Henry Tax Report which is as mysterious as a government grant from The Emperor in a Liberal seat – it never happens. Makes one wonder just why this report (six weeks since its release) remains highly confidential.

What is not confidential is that RWM no longer offer properties for rent. Our total focus now is on sales and Agentpoint has delivered what I consider the smartest homepage in the real estate industry.

We are proud to further develop our online business – as our business is your business.

Cheers ^__^

For this week’s recorded Balmoral real estate, Mosman real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate and Cammeray real estate sales www.rwm.com.au/news/

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12.02.10Robert Simeon3 Comments »

Go to your room! Our political parents have spoken and you are no longer permitted to talk to the now unsecured banks that hold and administer your pocket money. Your financial lifeline has now been frozen until further notice due to a financial meltdown. So spare a moment to consider what they will do with Climate Control! One school of thought is that Kevin Rudd and Wayne Swan have collectively created their very own version of the financial Ice Age. Ah, our very own financial conservatives where Treasury is the new Fort Fumble, not to be confused with Fort Tumble.

Freeze Frame. In the Senate standing committee that met this week for a “Please explain?”, Barnaby Joyce attacked Fort Fumble with his six guns, not to be confused with six pack. Straight from the hip he fired a question at Treasury guru Ken Henry which then ricocheted to David Gruen (obviously the smoking gun). “Had Treasury done any modelling on the Government’s $10.4 billion rescue spending (spree) package?” Continue reading »

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31.10.08Robert SimeonNo Comments »

Without a shadow of a doubt this week identified itself as the worst “Bad News Week” since negativity crept then swept world markets in August 2007. Culminating yesterday with the share market falling 2.53 per cent based on economic uncertainty and high oil prices shadowing stocks. No doubt there will be many eyeballs glued to the share market today trying to fathom investment strategies, given the collective sentiments that suggest we have worse to come. With interest rates at twelve year highs, the records that our markets keep identifying are records for all the wrong reasons which today resonate throughout the financial markets. Consumers are feeling the brunt of record high costs of fuel, food and rents which begs the (unanswered) question, how much ‘slow’ do we need before we start to grow again? Continue reading »

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13.06.08Robert SimeonNo Comments »