Wednesday, March 31, 2010

A hot new marketplace for Lower North Shore real estate

Last weekend’s “Super Saturday” was NSW’s second biggest auction day on record with 687 auctions (452 in Sydney) and a 70% clearance rate, transacting about $300million in property - a testament that both sellers and buyers are returning to the market in a big way.

 

Figures compiled by the Australian Property Monitors for February and March show that four interest rate rises and three quarters of strong house price growth have barely impacted the overall auction demand.

 

Reserve Bank chief Glenn Stevens made an appearance on breakfast TV earlier this week, and used the opportunity to confirm the widely believed perception that interest rates will go up this year. The market anticipates a rise to a cashrate of 4.25% by June and 5.0% by December.  Many experts are tipping a raise at the April RBA next Tuesday.

 

However, this is not a bad sign--when the RBA says there are rate increases to come, it can represent a fantastic opportunity to invest. Property prices typically don’t fall when interest rates increase: historically, interest rate hikes have coincided with surges in house prices.

 

Michael McPartland, managing director and head of residential real estate at Citi Private Bank, commented on the strength at the top of the market: “The wealth market is relatively insulated. Our clients look for opportunities when everyone else is circling the wagons. Buying becomes opportunistic in a downturn, particularly as people turn to hard assets such as property when other assets experience dislocation.”

 

Current auction activity is increasingly concentrated at the top end of the market, with the median price of property sold at auction in February at $770,000 a record high and well above the median price of $564,000 seen last February. While there has been some cooling at the bottom end of the market, the top end continues to shine, especially at auction.

 

RP Data predicts the most expensive Sydney homes will rise 10-15% this year, making it an attractive market for the international/expat market, even if they do not plan to settle here yet.

 

Australia is increasingly popular for overseas and expat investors. Expats from around the world have declared Australia the best country in the world to raise children, and the recovering professional services market is attracting returning Australian expats and foreign workers.

 

In addition, Australian banks such ANZ, NAB and Commonwealth have strong representation in Asia, enabling loans to be taken overseas in Australian dollars.

 

Australian property is perceived as a stable and safe investment for overseas buyers, particularly from mainland China. Markets in the Asia Pacific region soared in 2009, outperforming their European counterparts. We have also noticed that foreign investors with children studying in Australia are especially drawn to investment properties.

 

The changes to the foreign investment rules last year mean temporary residents can now buy established homes as well as new developments, and the procedure has been simplified for overseas buyers buying new homes and off the plan.

 

Most foreign and expatriate investors are seeking properties within a close radius to the city’s CBD, making the Lower North Shore a popular market.

 

In addition, a well publicised housing shortage is attracting buyers to the market right now. News Ltd is reporting that by 2029, the housing shortfall could reach 500,000 homes and apartments. The housing shortage will be most critical in NSW, which accounts for 1/3 of the nation’s population, but is only developing less than 20% of the nation’s new dwellings.

 

The GFC is in part to blame as property developers struggled to raise funds in 2008-2009, and continue to face strong obstacles to finance post-GFC. This has had a particular impact on high-density developments.

 

Australia is building fewer houses per head of population growth than at any point on record. The Housing Industry Association predicts around 152,000 dwelling commencements this year, fewer than the 190,000 needed to keep up with the rate of population growth.

 

Australian population has tipped 22 million and Sydney’s population has hit 4.5 million. Sydney property market’s median price is set to double in the next 10 years.

 

So what does this mean for you? Right now the property market is hot, especially in areas like the Lower North Shore. The resurgence in homes coming on the market we are seeing is being matched by a swell of buyers. This is the best market to sell we have seen in years, and for buyers who have been looking for months on end, there is exciting new homes hitting the market every week. Call us today if you have been considering buying or selling to learn what the new market could bring you: 02 9968 1700.

 

Wishing all of our clients and future clients a happy Easter holiday.

 

All the best,

 

Joshua Wygoda

Century 21 Resnekov Realty - Mosman

02 9968 1700 - 0414 666 190

 

 

Monday, March 29, 2010

Great result this weekend!

JUST SOLD! 21 Wudgong St Mosman

 

This charming 3.5 bed freestanding house achieved a fantastic result this Saturday of $1.4million.

 

We have tons of buyers seeking freestanding homes in this price range – find out today how much your home could achieve for you: 02 9968 1700.

 

Saturday, March 27, 2010


JUST SOLD !!

71 Clanalpine St Mosman

 

Immaculate Family Home with Substantial Entertaining and Indoor/Outdoor Living

 

Did you miss out? Give us a call today and we will find you your next home: 02 9968 1700.

 

 

Thursday, March 18, 2010

Interest rates tipped to hold

Most experts agree buyers may get a break next month as lending figures and employment statistic point to a hold on interest rates for April. And good news for buyers is great news for sellers -- if you have been thinking about selling, now is a great time to get on the market. Give me a call today to find out more 0414 666 190.

All the best,

Joshua Wygoda

Century 21 - Lower North Shore real estate experts

 

Friday, March 12, 2010

Lower North Shore Still a Winner

There has been a lot of speculation about what this year will hold. Of all the opinions, I am believer that Lower North Shore suburbs like Mosman, Cremorne, Neutral Bay and Kirribilli will continue to rise in price. The Real Estate Buyer’s Agents Association has put a figure as high as 10% for price growth this year in key Sydney areas such as the North Shore. The Reserve Bank continues to predict rising house prices as well, with a statement this week from RBA official Philip Lowe confirming the effects of the well-publicised continuing housing shortage. Other factors such as low employment, rising migration rates and subdued inflation are also driving the continuing demand for housing.

 

The strength in the housing market is clear from the sheer numbers we are seeing at our open houses and through enquiries about our advertised properties. Auctions are also out-performing this time last year – there was an 86% clearance rate at auction in the Lower North Shore last week, up 37% from the same week in 2009. Our auction at 17 Iluka Road in Clifton Gardens last week took top dollar for the weekend, with the hammer falling on $6.15million for the stunning brand new family home.

 

So if you have been considering selling, now is a fantastic time to get your home ready for sale and on to the market. And if you have been considering buying, it’s a great time to secure a home and watch the value grow. Give me a call today to discuss how to optimise your return.

 

 

 

Some of our Recent Success:

 

17 Iluka Road, Mosman - SOLD - Top auction price for the weekend

9 Silex Road, Mosman - SOLD - Off of Century 21 Buyer Database

148 Cowles Road, Mosman - SOLD - At auction, 5 registered bidders

2/814 Military Road, Mosman - SOLD - Prior to marketing campaign

 

Latest listing:

 

4 Tivoli Road, Mosman - 5-Bedroom Balmoral Residence

2B Park Avenue, Mosman - Luxury Freestanding Townhome

21 Wudgong Street, Mosman - The Great Entertainer

 

All the best,

 

Joshua Wygoda
Century 21 Resnekov Realty
02 9968 1700 - 0414 666 190
Lower North Shore property experts

 

Monday, March 8, 2010

SOLD UNDER THE HAMMER

17 Iluka Road Mosman

 

Fantastic result this Saturday at auction – stunning brand new Clifton Gardens home sold!!

 

We have buyers seeking luxury homes in the Lower North Shore – give us a call today to discuss what this could mean for you 02 9968 1700.

 

See 17 Iluka Road photos at on Facebook: www.facebook.com/joshuawygoda

 

 

Thursday, March 4, 2010

JUST LISTED 2B Park Ave, Mosman

Luxury freestanding townhome – Low maintenance designer living

 

This captivating freestanding townhome in esteemed Waterfall Estate address takes full advantage of the natural topography and tranquil wooded surrounds. Spread over three levels in a peaceful and very private location, this sizeable title is an architectural triumph of light and space with state-of-the-art inclusions and only the highest quality finishes.

 

3 Bed 4 Bath 2 Carpark

 

FIRST INSPECTION THIS SATURDAY 12-12.45PM

Contact: Joshua Wygoda 0414 666 190

 

Tuesday, March 2, 2010

Reserve Bank of Australia raises interest rates 25 basis points

Statement by Glenn Stevens, Governor, Reserve Bank of Australia

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.0 per cent, effective 3 March 2010.

The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still hesitant in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, growth has continued to be quite strong. The authorities in some countries are now seeking to reduce the degree of stimulus to their economies.

Global financial markets are functioning much better than they were a year ago and the extraordinary support from governments and central banks is gradually being wound back. Credit conditions remain difficult in some major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns remain elevated.

In Australia, economic conditions in 2009 were stronger than expected, after a mild downturn a year ago. The rate of unemployment appears to have peaked at a much lower level than earlier expected. Labour market data and a range of business surveys suggest growth in the economy may have already been at or close to trend for a few months. There are some signs that the process of business sector de-leveraging is moderating, with the pace of decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers. Investment in the resources sector is very strong. Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. New loan approvals for housing have moderated a little over recent months, however, as interest rates have risen and the impact of large grants to first-home buyers has tailed off.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it to unusually low rates are now abating. Inflation is expected to be consistent with the target in 2010.

With the risk of serious economic contraction in Australia having passed, the Board moved late last year to lessen the degree of monetary stimulus that had been put in place when the outlook appeared to be much weaker. Lenders generally raised rates a little more than the cash rate and most loan rates rose by close to a percentage point.

Interest rates to most borrowers nonetheless remain lower than average. The Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.

 

JUST SOLD 148 Cowles Road Mosman

SOLD UNDER THE HAMMER

 

Saturday’s auction at 148 Cowles Road was a fantastic success!

 

Give us a ring for more information 02 9968 1700

 

 

Monday, March 1, 2010

How Australia's Housing Market Stacks Up

An interesting global perspective: Today’s SMH reported that Australia’s housing market was a strong performer in 2009 with its 11.2% annual price growth ranked fourth-best in the world, out of 34 countries where data are available.

 

Here’s how we compare with a sample of other countries:

 

Country

% Annual Price Growth 2009

Hong Kong

+ 20.8%

Australia

+ 11.2%

Britain

+ 3.3%

United States

- 2.4%

Ireland

- 11%

Dubai, UAE

- 43.2%

Latvia

- 50.2%

 

We are certainly privileged to have had such a strong and rapid recovery. Give us a call to find out how much more your home is worth today.

 

All the best,

 

Emily Jessee

Century 21 Mosman

02 9968 1700