WHEN LESS IS MORE!

WHEN LESS IS MORE!

With the financial year now completed it is interesting to note that less houses were traded in comparison to the previous financial year. Therein lies the clue!! The Mosman property market posted a respectable thirty-nine sales in the Top 200 luxury house sales for 2003. RWM posted twenty per cent of these sales to finish equal first. We did manage to post the highest and second highest sales and secured three out of the top ten sales. Auction numbers were significantly down on last year’s numbers and this explains why home values have remained constant and healthy. The Mosman market has posted just the one significant loss with a home on The Esplanade, which was initially purchased in March 2000 for $5,900,000 and sold in March this year for $5,300,000. This is a classic case of paying too much for a property in the first place.

Another interesting statistic to emerge is that our home unit sales increased by thirty-eight per cent and for the year, they showed a very comfortable twelve per cent capital appreciation. The participants in this market are a blend of investors and owner occupiers and overall, demand is at an all time high. With BIS Shrapnel coming out this week with the prediction that Sydney house prices will jump a further twenty-four per cent over the next three years, the home unit market will remain buoyant for the foreseeable future. It should be noted that with the re-introduction of investors to the market, vacancy factors have risen in the short term, although winter is always a difficult rental time.

With the “Governor of Moolah” deciding to leave the cash rate at 4.75 per cent this week, economists blamed the strong property market for the decision. With the vast majority of economists predicting a reduction prior to the announcement, it is nice to see them getting one thing correct. It’s interesting that they did not take the property market into consideration when they predicted a rate cut.

With all the discussion and debate, about ‘the bridge over troubled waters’, one thing is a certainty, property prices on the Northern Beaches will dramatically increase, which in turn will drive Mosman property prices higher. With Federal MPs getting involved and when the present plan is overturned and a tunnel is announced, home prices in these surrounding areas will skyrocket. This then means that the Government will reap plenty in Stamp Duty. Why haven’t they worked that one out before now? Running true to form the Carr Government has delayed the new property laws from 1 August to 1 September, which in all probability will be delayed even further. With agents facing fines of up to $22,000 for indiscretions, one would think they would rush this one through, given the number of agents who appear before the Department of Fair Trading.

With the market going into hibernation for July, most agents can be found at Sydney Airport this month. Steve is attending a property conference in Fiji, and I am attending one in Phuket so Richard will be doing the next two editions. I will see you in a few weeks. Nothing beats a real estate conference at this time of the year!! Cheers and clink… ^__^

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