The World Has Changed Faster Than We Think

The World Has Changed Faster Than We Think

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Our ‘Head Teller’ at the Reserve Bank of Australia (RBA) framed it so accurately this week when he said “adapt or die – RBA’s bitter medicine. “Stop complaining about the economy, start adapting to it – and adapt to it by raising productivity.” Now it is all very well to draw a bow at productivity which entails both the private and public sectors – for example it is estimated that Australia has an estimated backlog of $700 billion of infrastructure projects that remain on the political drawing board. Until a plan is developed to fast track infrastructure absolutely nothing will change in this sector which is slowing our economy down. No better example of this than Pacific Hwy upgrade in jeopardy: NSW govt with the Gillard government reneging on previous pledges.

For mine there have been just the one single business phenomenon to change the way that consumers behave and that happened with the release of the first iPad in April 2010. How the internet blew up Aussie Post a generation ago Australian Post held a monopoly on all written communications where today it accounts for less than 1 percent and getting worse. The main productivity issues facing Australian businesses are that of reinventing themselves into the digital world.

Who will survive in the digital future? A report into Australia’s digital future has predicted the demise of traditional media as the digital economy expands. The report, A Snapshot of Australia’s Digital Future to 2050, lists the winners and the losers of what it calls “the new utility” – high speed broadband, mobiles and wirelessly, coupled with advanced analytics and computing systems. I have never been a fan of the NBN roll – out given it will fast become a ‘white elephant’ and a complete waste of money. The report predicts that by 2050 one in four people will be working from home and that I believe would be mainly on a wireless connection.

BUY PRINT

Our online world is being dominated by three major players Apple, Google and Microsoft which are all focussed on the mobile market (not fixed cable.) At the Worldwide Developers Conference this week Apple announced that in the past year it had paid its developers $5 billion in research/development. A new breed of retail letter bomb the next wave of online retailing, far more dangerous for traditional retailers than the first wave, is now upon us. It has been happening in the US and Europe for more than a year, but has now arrived in Australia. Coincidentally economic conditions a ‘tale of woe’: Myer chief which should not come as a great surprise in that five years ago I predicted that in ten years time Myer and David Jones would cease trading in Australia. The mega – big American retail stores would devour our retail industry. The world simply can’t get enough of wireless online retail shopping therapy – which is now in plague proportions. Smarter shopping is now done by smart phones and tablets – iPads.

The signs are also there in our financial markets which according to yesterday’s Goldman Sachs Afternoon Market Report market trades from the peak of $6.6 billion in 2007 are now down a whopping – $2 billion less a day or 31 percent below that peak. In 2007 through to today the one significant change has been how we use technology – consumers are better informed and far better connected to these markets simply through these technologies.

In real estate (and we are no exception to the rule) we can show how many properties are on the market – from this week – to last week – to same time last year. Whilst interesting to see that property volumes appear to remain in a holding pattern – the big market mover this week was Neutral Bay apartments which moved from 61 last week to 54 this week. Consumers demand accurate and precise market information which again can only be delivered over the internet.

    Source: Domain Property Monitors 

    MOSMAN – 2088

    • Number of houses on the market last week– 94
    • Number of houses on the market this week – 94
    • Number of houses on the market this time 2011 – 104
    • Number of apartments on the market last week – 88
    • Number of apartments on the market this week – 89
    • Number of apartments on the market this time 2011 – 97

    CREMORNE – 2090

    • Number of houses on the market last week– 16
    • Number of houses on the market this week – 16
    • Number of houses on the market this time 2011 – 17
    • Number of apartments on the market last week – 21
    • Number of apartments on the market this week – 19
    • Number of apartments on the market this time 2011 – 42

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 16
    • Number of houses on the market this week – 17
    • Number of houses on the market this time 2011 – 11
    • Number of apartments on the market last week – 61
    • Number of apartments on the market this week – 54
    • Number of apartments on the market this time 2011 – 63

    For this week’s sales in 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

    For this week’s open for inspections
    • Click Here


The RBA knows a material housing price decline would imperil the entire financial system: Christopher Joye which is just not happening within Australia alone house prices fall in 26 countries in March quarter, with Australia in longest downturn in a decade: Global Property Guide. From the graphs above it is most clear that low rental vacancy rate ‘insulating’ Sydney residential property market against economic woes: CBRE.

Electricity bills to go up again – by 21 percent in the city so abolish this stupid Carbon Tax. It may be fine to blame past state Governments for failing to upgrade the electricity networks however those Governments were Labor Governments – which today only exist by name not numbers. Throw in the billions of dollars being wasted with the ongoing daily asylum arrivals – the federal government needs to look in its own backyard before it starts handing out advice on all things pertaining to productivity.

Businesses have enough on their respective minds without having to constantly babysit governments.

Fake surf at the Opera House last week and the real deal at Balmoral Beach this week – which is undoubtedly yet another change too.

 

Cheers ^__^

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