Top End Properties Are Starting To Shine – Again

Top End Properties Are Starting To Shine – Again

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In an amazing revelation this week the Australia Bureau of Statistics (ABS) announced that it gets the official employment figures wrong. Whilst happy to acknowledge this, even more alarming is the fact that it won’t rectify this situation simply because it will cost too much money! So what is the cost to correct this? Well the ABS suspect it may be as much as $1.500 million (yes million) however, due to a 25 percent capital budget cost cut, the upgrade can’t be funded. ABS job figures wrong, but it’s too big a job to fix so employment did not grow at all in 2011 although it surged 363,500 in 2010. This means that official figures overstated the weakness in the labour market that led the Reserve Bank of Australia (RBA) to cut rates at the end of 2011 and overstated the strength that led it to increase rates at the end of 2010.

This week the RBA leaves rates unchanged at 3.5 percent with many suggesting that at this point in time it continues to keep “its powder dry” even though head teller Glenn Stevens stated in his notes “a more subdued international outlook than a month ago”. Although it was interesting to read RBA should raise interest rates following June rate cut mistake: Warwick McKibbin who claimed the central bank made a mistake at its last meeting by cutting the cash rate and misread the economic signals. “If you’re always adjusting to what you think is going to happen, you’ve got the problem that if it doesn’t happen, you’re in the wrong place.”

Westpac still expects three more RBA cash rate cuts by the end of the year nominating a cash rate of 2.75 percent with a 25 percent rate cut in August, another 25 percent in September and a final 2012 25 percent in December. Should this eventuate, we expect an interesting property market in August when the real trading commences again.

BUY PRINT

Rise in property prices coinciding with more confident home buyers and investors: Mark Bouris commenting on the RP Data announcement that in June, capital city house prices recorded a 1 percent rise. As I have commented recently in Virtual Realty News we are of the opinion that house prices have bottomed in Mosman, signalling a home prices jump after RBA cuts. Australia is in a most fortunate position that the RBA still has plenty of room to move with the cash rate which would explain why; the cash rate was left at 3.5 percent this week.

If our population continues to rise at above trend, (we are certainly not building enough new homes) this will only drive prices up.

Australian housing at its most affordable level for nine years: Christopher Joye although it was interesting to see that the 2011 census revealed Australians now prefer high density living – Up not out for housing. In the five years since the 2006 census, every capital city in Australia experienced a decline in separate houses, and on an overall state- by-state basis, only Queensland and South Australia grew the percentage of standalone housing – albeit by the slimmest of margins and despite their capitals doing the opposite. This is an international trend and I predict that down the track, Mosman will start to see high rise developments.

Since we have been recording weekly statistics, houses for sale in Mosman never fell below 80. This week, there are 76 and my prediction is that in coming weeks, this number will drop to 65!

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week– 80
    • Number of houses on the market this week – 76
    • Number of houses on the market this time 2011 – 88
    • Number of apartments on the market last week – 89
    • Number of apartments on the market this week – 85
    • Number of apartments on the market this time 2011 – 97

    CREMORNE – 2090

    • Number of houses on the market last week– 11
    • Number of houses on the market this week – 11
    • Number of houses on the market this time 2011 – 17
    • Number of apartments on the market last week – 19
    • Number of apartments on the market this week – 19
    • Number of apartments on the market this time 2011 – 34

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 15
    • Number of houses on the market this week – 14
    • Number of houses on the market this time 2011 – 9
    • Number of apartments on the market last week – 51
    • Number of apartments on the market this week – 52
    • Number of apartments on the market this time 2011 – 67

For this week’s sales in Cremorne,  Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, , Neutral Bay real estate, Cammeray real estate.

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For this week’s open for inspections
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At the start of the new financial year this week (as well as the Carbon Tax) it was interesting to read Sydney’s top 20 house sales in the 2011 – 12 financial year: Title Tattle. For the very first time, the top three sales were north of the harbour bridge and Mosman posted two of them.

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We have observed in recent weeks, a renewed interest in Mosman’s top – end properties and we will continue to monitor this carefully.

Cheers ^__^

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