YOU CAN BANK ON THAT !!

YOU CAN BANK ON THAT !!

Across the country, property markets are facing dilemmas in some shape or form. Whether it be falling prices or rising prices, the biggest problem for us and our niche market, has been the decline in the volume of property available for sale on an annual basis. However, Mosman in 2006 can, in all probability, eclipse the 2005 volume which would be the first upward swing since 2001 (according to figures provided by www.realtor.com). In 2006, Mosman is now just 56 sales away from equalling the 289 sales recorded in 2005.

Houses – Mosman
2001 445 sales Median $1,250,000
2002 391 sales Median $1,700,000
2003 376 sales Median $1,699,500
2004 309 sales Median $1,640,000
2005 289 sales Median $1,850,000
2006 233 sales Median $1,765,000

Apartments – Mosman
2001 679 sales Median $410,000
2002 725 sales Median $452,000
2003 569 sales Median $475,000
2004 474 sales Median $473,500
2005 478 sales Median $520,500
2006 285 sales Median $496,000

These figures indicate that while the house market is improving, the apartment sector is struggling. The simple reason behind this is that merchant bankers and expats buy houses. It is possible that this year, sales of houses in Mosman could creep back to around 300, which reinforces the strength of the house market.

Of course the apartment market would improve dramatically, if the state government announced a moratorium on new taxes which previously have been aimed directly at investors. Hence the decline of investor interest, as thanks to the state government, they have been used and abused. What is pleasing to see is that in some areas, apartment median prices are increasing which indicates that prices have well and truly bottomed.

It is not just Mosman that is enjoying an increased tempo. The volume of sales in Cremorne and Neutral Bay has also increased.

Houses – Cremorne
2001 117 sales Median $847,500
2002 105 sales Median $1,167,500
2003 89 sales Median $1,252,000
2004 80 sales Median $1,210,000
2005 64 sales Median $1,310,000
2006 58 sales Median $1,155,000

Apartments – Cremorne
2001 307 sales Median $432,000
2002 380 sales Median $485,000
2003 342 sales Median $510,000
2004 330 sales Median $500,000
2005 306 sales Median $490,000
2006 231 sales Median $523,000

Houses – Neutral Bay
2001 82 sales Median $968,500
2002 80 sales Median $934,250
2003 69 sales Median $1,195,000
2004 60 sales Median $1,312,500
2005 55 sales Median $1,070,000
2006 59 sales Median $950,000

Apartments – Neutral Bay
2001 443 sales Median $405,000
2002 406 sales Median $442,500
2003 384 sales Median $510,000
2004 330 sales Median $495,000
2005 274 sales Median $502,500
2006 191 sales Median $485,000

It is very clear that when individuals do well in the workplace, the property market prospers. So in a somewhat different edition, the compelling argument is that sometimes numbers make much more sense than words. For the better part of this year, I believed we would achieve a sub-200 house sales volume. In this case, I am more than happy to eat humble pie!

From humble pie to caviar, if you are looking to rent the best and largest apartment on Balmoral, please look at our Rental of the Week. The perfect indulgence .. cheers ^__^

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