WHAT IS THE ‘GOVERNOR OF MOOLAH’ THINKING?

WHAT IS THE ‘GOVERNOR OF MOOLAH’ THINKING?

Do you think, or do you just think you think? Well our esteemed ‘Governor of Moolah’ has a plan in place for the property market and I think I know what it is !! If you asked the Gov. which month of the year he dislikes the most, I would hazard a guess he would say February, as that is the month that launches the property market each year. Next year, 2004 will be the eighth year of unprecedented trading and I think the Governor will try and slow the February market down to a mild walk. Our ‘Governor of Moolah’ mounted phase one of his stealth attacks on Melbourne Cup Day and he certainly ambushed the market, as nobody called it, given that interest rates last moved way back in June 5, 2002. I predict that we will not see another rate increase until they meet in February 2004 and then we can expect a ‘rate slap’, aimed at taking the wind out of the property market for 2004. In 2001, September 11 stopped the market, as was the case in 2002 with the Bali bombings. The 2003 market has not had to contend with terrorism. When the Governor issued his Media Release on Monetary Policy on November 5, he left plenty of fingerprints on it and it is abundantly clear that he has a hidden agenda. Time will tell if we are correct with our interpretation of where the property market is headed; it will be an interesting February edition.

Now back to our market, which has just weeks left to trade before the close of business 2003. Many are saying that the market is now dead and buried with the market coming off big time. Well, I may have something to add to that as in the last ten days we have exchanged $23,590,000 in local property, of which $11,365,000 went to subscribers of ‘VRN’. This knocked our Internet sales up to 132 at a value of $224,609,000. This is an amazing story in itself, as we are the only agency that uses this method. Gone this week, 7 Wallaringa Avenue Neutral Bay which only confirms that the waterfront market is still alive and well, sale price confidential. 39-41 Aubin Street, Neutral Bay sold ahead of the closing date. Both the purchaser and vendor are subscribers, so again a confidential sale price (the purchasers flew in from Singapore). 28 Ryrie Street Mosman sold at auction for $2,300,000; purchaser is a subscriber, 1 Cabban Street Mosman went prior to auction and is confidential as the purchaser is a subscriber and I owe him a bottle of port. 4 Queen Street Mosman was sold for $2,500,000 and 5 Murdoch Street Cremorne went early and again a confidential sale price. 7 Hodgson Avenue Cremorne sold to a subscriber and the price is confidential. The home unit market still remains strong with 8/ 10 Clifford Street Mosman selling to a subscriber for $701,000, 26B/2 Brady Street Mosman sold for $800,000 and 3/20 Killarney Street Mosman sold for $925,000. Just goes to show that some just “think they think that they know” what the market is doing.

The ‘Queen of Apartments’ Marize Bellomo has the flush of success stamped all over her, as she is currently marketing fourteen apartments, which once again shows that Marize sells more apartments in the area than any other agent. An interesting statistic with this market is that one in three sales is to an investor, so as soon as we sell the property it is back up for rent and the rental market still remains very strong. This again confirms the Wizard Home Loans’ survey which revealed that nearly 900,000 Australians will be back investing in the property market next year. The most amazing statistic to come from this is that three years ago, the same survey identified 246,000 investors and three years on it has tripled. We anticipate a strong home unit market as Mosman, Cremorne and Neutral Bay are blue-chip investment areas that are very well established with strong tenant enquiry. Jasmine Dimitriou has joined us also and both Marize and Jasmine, or as I call them ‘Maz & Jaz’, will be the dominant forces in this market again in 2004.

It is a very interesting market at the moment and we are loving every minute of it. The dynamics are changing weekly and who would have guessed that the ‘Governor of Moolah’ was reading a different form guide on Tuesday. What remains to be seen with a Federal election looming is, will the Governor be on the Treasurer’s Christmas Card list this year? It is alright to think globally, however for quite a few the real issues are local, the only problem is that most of us just don’t get the big picture!! I never did understand macro-economics, cheers and clink!! ^__^

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