Well that’s the end of January.  With kids starting back at school this week the holiday season is officially over and I anticipate the next couple of weeks will be the true test of property sentiment.

Traditionally January is a slow month for property as it is for many businesses but so far we’ve been doing okay.  We’ve had more people through the doors than I would expect and certainly more interest from potential sellers looking for advice on when to list.

My advice even in this yet-to-be tested 2012 market is to list as soon as the property is ready.  It’s always worth taking the time and investing the money to ensure the property is presented correctly for sale. 

When viewing property for a potential listing our team is always very honest about the value of staging…I can say that because they certainly were with me when I asked for an evaluation of our family home last year!

We undertook some cosmetic changes to freshen up our home before we started marketing it.  We finished off and finessed those long forgotten projects.  We cleaned up, freshened up and decluttered and it made a difference to the appeal of the property.

So if you are thinking of selling my advice is to get to work now so you can be ready for an Autumn listing.

Over the last couple of weeks I’ve been fascinated to read all the predictions for the economy and specifically the property market for 2012.

If they’re to be believed over the next twelve months we are guaranteed to see property prices increase, unless they decrease and that will happen only if they don’t stay flat.

Yes.  It’s that clear.

The excuse for such diversity of opinion is attributed to the uncertainty engulfing international economies.  What will happen in Greece?  What impact will that have on the rest of Europe?  Whatever those unknowns turn out to be could impact Australia

But really, is this year any different?  Can we ever predict the future with confidence?

Last year should have been far better than it was for property.  The economics were good and improved as the year progressed but I don’t think anybody realised the effect uncertainty would have on confidence of domestic buyers and sellers.

So what will happen this year?  I’m not going to try to predict it but I did like the opinion of Jessica Irvine in the SMH.  She suggested the ‘Goldilocks economy has a few tricks in case bears turn nasty’ and I think her analysis is right.

‘If it’s good, it’ll be moderately good.  If it’s bad, it may be horrid.’  No it isn’t definitive but I think it’s true.

But just so I don’t end my first post of the year on that scary note I’d like to point out that Jessica does finish by saying ‘there remain reasons for optimism amid the gloom.’

I agree, so let’s get on with it.

The strength of the Aussie dollar means, in the words of one commentator that ‘for the first time in living memory for Australians, the rest of the world is on sale’.  But that’s not particularly good news for domestic real estate.

Over the past few months we’ve seen a distinct lack of overseas buyers coming through our doors.  It appears the strength of our dollar has achieved what Federal Government changes to the FIRB rules could not. 

The FIRB changes were introduced in response to a perceived influx of cashed up Chinese buyers pushing the prices of domestic real estate out of reach of locals.  However in November last year I commented that the FIRB changes, which had been in place for six months, did not seem to have stemmed the interest of overseas buyers. 

But now with the strong Aussie dollar those overseas buyers are nowhere to be seen.

It’s not the end of the world because the majority of our sales have always been to locals but obviously the disappearance of a segment of potential customers obviously makes it harder.  That’s especially the case at the premium end of the market which was so attractive to Chinese buyers looking for a base or investment in Australia.

Of course the strong Aussie dollar is also impacting investment decisions of local buyers with many taking the chance to expand their property horizons offshore.

That makes the high-end sales harder to achieve but I remain optimistic that when Summer finally does arrive so too will buyers enticed by the prospect of living beside the magnificent Sydney Harbour!

I think it’s time to sit down and have a firm word with all potential buyers out there. 

Over the last couple of weekends I’ve been to auctions where people have excitedly told they hope to get the property for a price way below the advertised guide price. Yes we know it’s a buyers market but even in a buyers market that just isn’t being realistic.

True, earlier this year vendors were not always prepared to accept that Sydney prices were stagnating.  Years of fantastic growth almost had us believe it was inevitable we could sell a property for significantly more than we paid for it.  As such vendors continued to set their price expectation based on what they wanted for their property rather than what the market would be prepared to pay for it in the current economic climate.

That often meant a property would end up selling at significantly below the initial price guide. But that’s changed.

Obviously I can’t speak for everyone but in most cases these days the price expectations of vendors has changed to match the market.  That means the advertised guide price for a property really does reflect what the vendor expects to receive for the property.  It reflects the true value of the property together with the economic climate.

So if you are on the look out for a property then yes, now is undeniably a great time to look, but I think you’re setting yourself up for disappointment if you think you will be able to bag a bargain way below the guide price.

I have lived for the past decade in an area of Sydney not many people know about.  One of the gems of this city that has remained hidden and is now stronger for it!

From its once leafy suburban past over recent years Chatswood has become known for apartments and development which I think means many families rule it out as a desirable option.  But West Chatswood worked incredibly well for my family.  The central location, transport links and shopping opportunities it provided, together with decent sized blocks, character homes and tree-lined streets were not what many people were expecting when they viewed my place.

For people relying only on the internet for their property search pockets like West Chatswood will remain undiscovered.  Many of the viewers of our home were impressed but admitted they wouldn’t initially have considered the area.  A good relationship with the agent meant those clients took his advice to check it out and realised the property and location really did suit their needs. 

I think Woolloomoolo is another area of opportunity that is being overlooked by the property internet search.  The Wharf represented one of the first developments of its kind in Sydney and will always represent a premium location, but that doesn’t mean good value property opportunities don’t exist.

Too often property hunters are focussed on being the first to discover the real estate holy grail.  The ‘the next big thing’ in property is the suburb which hasn’t yet become trendy so prices are low but the area is showing signs it will be the next to go.

For those people Woolloomooloo won’t be included in the internet property search because they consider it has well and truly ‘already gone’!  But those people could be missing out.

The mantra of ‘location, location, location’ is undeniably important but my advice is to remember that the internet suburb search criteria can’t unlock all the secrets that represent property opportunity out there right now.

I sold my house at auction last weekend and you know what?  I behaved exactly the same way all vendors do! 

I went through the full range of emotions and shared them with my agent every step of the way.

Excitement at the start of the process.  Disappointment when the estimated selling price I was quoted was not the price I wanted.  Anger when the agent wasn’t prepared to boost my ego by raising the guide price of our family home.  Doubt about the decision to sell when I saw the house look so great, clean and ordered on the days it was open for inspection.   

All that before the auction day and with members of my own sales team!

It was a great reminder of the reality of selling a property.  Real estate is my business but that didn’t diminish the personal stress of selling my family home.

The best thing for me was knowing I could trust my agent. Actually it was more than that.  I knew that in relation to the guide price, marketing exposure and auction process I HAD to trust my agent.

Of course I challenged him to explain his recommendations but that open communication meant I always knew what was going on and had confidence in the way the campaign was progressing.  It reduced the level of angst I felt.

Being a vendor is not easy.  Whether selling your family home or an investment property it’s a stressful process with big money at stake.  We had a great result from our auction campaign but it would be an understatement to say I’m glad it’s over.

I’ll now get back to helping other people sell their properties…hopefully with minimum stress and maximum result!

As promised last week it’s time to report in.

It was a bumper weekend for auctions across Sydney and Morton & Morton was no exception.  We had two properties sell under the hammer and three others offered at auction are now in the process of serious negotiation.  If we can secure those sales I will consider it to have been a successful weekend but obviously no deal is done until the papers are signed.

On the back of the sentiment I saw on the week I’ve firmed in my view that the only market certainty is the very uncertainty of the market.  We need to stop waiting for the magic fix.  At this point I just can’t see that anything will restore underlying consumer confidence.

We used to see interest rate falls, like the one announced this week, deliver a boost to the market. Now a rate cut is welcome news but it no longer automatically flows through to our spending patterns. 

That’s not to say the market is doomed. I don’t think it is and the results of the weekend prove that. 

But it does mean buyers, vendors and most importantly real estate agents have to adapt to the new environment where market trends don’t really exist.

Expectations of all parties need to be tempered.  Volatility has to be expected.  Ongoing, open and honest communication between agent and client is crucial.  That’s our strategy for the months ahead.

A couple of weeks ago I said I’d keep you posted on what the future holds for the property market.  Well for many in the property game ‘the future’ officially starts this weekend....

That’s because this weekend marks the start of our first auctions of the Spring selling season. The first of the Spring marketing campaigns are coming to a close and at Morton & Morton we have a record number of properties going under the hammer.

So let’s take stock. 

Since the beginning of the year I’ve written about the interesting phenomenon in Australia which has seen us so nervous about the possibility of another GFC that our behaviour was almost causing those very fears to come true. 

Most would acknowledge that in comparison to most, the Australian economy is in a good place right now but there is no getting away from the sense of impending doom we have all been feeling.

However the reality is it hasn’t come true yet and over recent days the economic forecasts have been more positive.  Domestically the common belief is that interest rates will at worst remain on hold and at best will fall. Internationally an agreement has finally been reached on how to manage the financial turmoil in Europe.

So where does that leave real estate?

Our record number of listings and auctions scheduled for the next few days is a positive sign vendors understand there is still value in the market.  We have had significant interest in the properties but the results of our auctions over the next few days will be a true test of whether or not buyers are comfortable with the promise that Australia will continue weather the financial storm.

I’ll let you know next week.

Buyers agents. They’re not a new phenomenon but in recent months they seem to have increased in prominence and profile. 

Buying a property can be complicated and intense.  It’s a very big decision to invest in real estate so it’s understandable that more and more people are recognising they don’t have the time, the skill or the patience to do it on their own.  That’s where a buyers agent comes in and I think they’ll increasingly have a key role to play in the world of real estate.

And in my view that’s not a bad thing.

Many people assume an adversarial relationship exists between an estate agent and a buyers agent.  The assumption is a real estate agent will feel threatened by the appearance of a buyers agent in the sale process.

Certainly a good buyers agent knows the system.  They understand the processes, the legalities and, perhaps most importantly, the subtle nuances that are inevitably part of any property sale negotiation.

But contrary to what you might expect I’ve found working with buyers agents to be very positive for exactly those reasons. 

They know the rules and understand the game so you can get things done quickly and efficiently which is to the benefit all parties.  The absence of emotion at the negotiating table cannot be underestimated.

I’m really proud to share the news that the team at Morton & Morton were nominated and received three awards at the Annual Real Estate Institute of NSW dinner held on Saturday night.

Morton & Morton were awarded Best Large Residential Agency, Best Corporate Website and Dani Dingwall was recognised in her role for Best Corporate Support.

Such peer recognition is really satisfying and I want to congratulate everyone at Morton & Morton for their tireless work and commitment to quality service and results.

However it’s not just in the hope of winning that Morton & Morton enters the REI Awards (although that of course is a wonderful result!!).  For us the Awards represent a crucial opportunity each year to reflect on our business practices, to prevent complacency and to ensure we continue to perform at the top of our game.

Too often the pressure of meeting day-to-day work demands means management and staff don’t take the time to review the ‘big picture’.  Producing our submission for the REI Awards motivates us to look at what worked, what didn’t, where can we improve and develop plans to reach those goals.

The outcome of the 2011 Awards is incredibly satisfying but equally exciting is the fact we are already working to put into practice those plans which will hopefully see us recognised as a leader in our field again in 2012.

Morton & Morton are proud to be recognised as finalists in this year’s Real Estate Institute of NSW Awards for Excellence in the following categories:

• Large Agency
• Website
• Corporate Support

We would personally like to thank all our clients for their continued support of our business.  We always strive to get the highest possible market price and deliver a great service. These awards are a testament of all our hard work for you and we are look forward to continuing the service.

Formal ceremony and presentations will be held on Saturday 15th October 2011.

I’m beginning to think the state of the real estate market should be added to the list of subjects to be avoided at dinner parties.  Like religion and politics it has the potential to stir up some very heated emotions.

Property is always an emotive subject but in times of uncertainty it takes on a whole new dimension. 

Is there going to be a crash? Are we already crashing? Are we heading the way of the US or are the Australian fundamentals stronger, so the property market safer here than around the world?

I read an article yesterday in which Ian Verrender explained his belief that the Aussie property market will not crash.  What was as interesting as the piece itself were the hundreds of comments the article generated which were as diverse as they were strident.  Some were labelled doomsayers, others real estate industry apologists.

At the moment I think the only certainty is that nobody is really certain.

At the risk of sparking accusations of self interest I’m prepared to go on record saying that I do have confidence in the market even though prices are not at the same level they were several years ago.  It is a very tough market but properties are selling and delivering reasonable returns.

As to what the future holds….well I’ll keep you posted. 

As the days continue to warm the burst of media stories announcing the perfect property ‘buyers market’ have been as prolific.

It’s true the onset of Spring has brought more properties to market but the positives for property hunters are not new. In fact they have been evident for months which is evidenced by the fact Morton & Morton third quarter results are better than the same period in 2010.

Competition between the major banks for mortgages is as fierce as I’ve ever known which is obviously great news for buyers. Everyone looking for a home loan really should be motivated to seriously shop around for the best deal because there are some very good deals on offer. Plus the expectation is for interest rates to at the very least remain steady, if not fall in coming months.

So for months now money has been relatively cheap and property prices competitive.

Certainly we are seeing increased interest from potential buyers including on Saturday when we hosted two auctions with good attendance at both. The properties sold immediately post-auction for a good result but only after some tough negotiations. 

Since 2010 I have talked about the trend to save more and carry less debt which has dramatically impacted the property market. Recent months have shown the resilience of that attitude shift. Buyers are out there keen to secure opportunistic bargains but they remain very, very cautious.  

Vendors need to take that into consideration when setting their property expectations. 

This week I want to talk about something that I think is being overlooked in discussions about recent property trends.  The resurgence of life in our CBD.

The AFR wrote in an article last weekend that ‘Downsizing baby boomers and the financially pressed younger generations are looking for much the same thing – smaller homes located close to amenities and employment.’

Certainly at Morton & Morton we have seen an increasing number of young families looking to move into or as close as possible to the city.

Also in the past week I’ve read stories about plans for a world class convention centre at Darling Harbour and today the papers are full of pictures of the revamped ‘Star’ Casino.

They’re both incredibly exciting initiatives that will undoubtedly draw people into the area but I’m not just talking about tourists. 

I’m talking about the growth of strong inner city communities.

For example working with clients in the Surry Hills area Morton & Morton became aware of, and has started to support, the Bourke Street Public School.  With an enrolment of just 91 children in 2011 the school’s kindergarten enrolments were up by 30% and they anticipate a similar jump in numbers in 2012. 

That’s a really exciting reflection of the local community and one we are seeing replicated in other central locations like Pyrmont with the hugely popular and proactive Jacksons Landing Community Association.

It proves that you don’t have to be in the suburbs to get to know your neighbours.

Does market doom and gloom today have the potential to impact property values in the long term?

Interest rates and amendments to NSW Stamp Duty exemptions for existing properties which have been the headline property issues this week will almost certainly have an impact on sales over coming months.

However buyers will also look to evaluate the future return on a property as a crucial factor in determining how much they should pay for that property today.

In that context the trend of increased saving and reducing household debt may well have implications for housing values in years to come as has been claimed by some commentators in recent weeks. 

The mortgage has always been the biggest contributor to household debt and over the last decade that proportion has increased as property values have increased.  Some claim a move to reduce household debt will mean a reluctance to meet any ongoing rise in property prices and so value is set to stagnate.

I can see the logic in that argument but I think it fails to take into consideration the fact Australians continue to aspire to own their own home together with the ongoing shortage of housing.

I absolutely believe those two factors alone will ensure long term value of property in Sydney. 

The hot topic within the real estate world at the moment is one you might think is a little disingenuous.  Are house prices too high in this country and can they continue to rise?

Well of course they’re too high will be the response of every hopeful househunter out there. Meanwhile vendors will acknowledge prices have been high but will lament that they’re not as high right now.

I think the question of whether prices are currently too high really is slightly odd.  They’re as high as people are prepared to pay.  Over-optimistic vendors expecting unrealistic prices soon learn the market sets the true value of property at any moment in time. 

At the moment house prices are holding but apartment prices are struggling.  I think that might be because houses are a very traditional market so people have more confidence in the rise and falls that occur in value.  On the other hand the high-end apartment market is relatively young here in Australia so there is less of a historical context for people to reflect on to determine long term value.

As for the coming months I have to admit that I am watching employment statistics very carefully these days as I see it as the potential biggest influence on the state of the real estate market.  If there is a significant increase in unemployment then I predict we’re in for some rough times ahead.

As for the longer term property values…that’s a more complicated question and one I’ll leave till next week to discuss.

I’m claiming professional privilege as my excuse for being one of the million plus people who tuned in to watch The Block auction on Sunday night.

For me the fact the auction was such an anticlimax came as no surprise.  It was a reality show that didn’t set very realistic expectations.  Auctions don’t always end with the hammer going down on a sale.

The uninitiated might think real estate auctions would present for exciting television because of the high stakes and high tension in the room.  True, but more often than not auction night is a stage in the process to securing a sale rather than a guaranteed conclusion.

And so it was on The Block. 

The masses of commentary that followed the program this week claim the auction was a dud.

In actual fact the most realistic thing about The Block sale process was the fact that deals were done in the crucial days following the auction.  Parties with a genuine interest in the properties knew the time was right to come to the negotiating table and deals were done.   

The Block showed that passing a property in on auction night doesn’t automatically mean the vendors are desperate and prepared to accept any price.  For two of the passed in properties on Sunday night the deals eventually secured were significantly above reserve.

It shows that even though it can be disappointing an auction hasn’t ‘failed’ if a deal isn’t done on the night. 

Also remember the issue with selling by Private Treaty is ‘days on market’ because the cost of selling increases with each passing day.  Private treaty provides no push to get potential buyers sitting at the negotiating table.  The main benefit of an auction in this market is actually creating an environment where a deal can be done at the very best price the market can offer.

My personal preference is to auction everything and with the Morton & Morton clearance rate well above 80% I’m confident recommending that option to our clients.
 

Morton & Morton has joined forces with Bourke Street Public School to support literacy. We are purchasing new take-home reader books for the rapidly growing school community. We understand how important it is for parents and children alike to have good quality reading material that is essential for development.

In addition to the take-home reader books we will donate a further $1,000 to the school on behalf of anyone who chooses to sell their home with Morton & Morton.  Just mention this blog to find out more…

If you're in the market to sell your home this could be a fantastic opportunity to get a great result for your home whilst supporting a great cause.

With your support we aim to raise $10,000 by Christmas 2011, so what are you waiting for, get involved and support your community.

Last week as I sat down to write my blog it seemed as if the sky was falling.  The sharemarket upheaval caused the world to shudder and we all held our breath as we waited to see if the tumble would turn into an avalanche.

A week on and things have settled but it’s interesting to look back at the week that was. Most important is the fact that we continued to see clients come through our doors looking to buy.  That’s because property investments are rarely spur of the moment decisions so while events of recent weeks might cause some potential buyers to pause it rarely means the end of negotiations. It just means we have to work harder to help address concerns.

I did find it interesting to read through the week some commentators questioning the validity of property as a ‘safe haven’ during times of sharemarket turbulence. I don’t think that view attributes sufficient value to the long term emotional security derived from real estate.  Just as purchasing is rarely a spur of the moment decision neither is it a short-term decision.  Homeowners and investors are usually in it for the long haul and are therefore better placed to ride out short term price fluctuations.

One report I read this week said ‘uncertainty is not conducive to decision making’.  I do agree with that point which is why a return to property in response to the sharemarket drop might not become evident immediately but I do anticipate an increase in buyer activity as we head into Spring.  

It’s okay. Don’t panic.  As the turmoil on sharemarkets around the world continues those with real estate investments should remember bricks and mortar will hold their value.

Of course buyers are sensitive to rises and falls in interest rates and the sharemarket. I’ve said in recent weeks we are increasingly seeing consumer sentiment affected by international financial events like the talk of defaults in Europe.

However the sharemarket volatility this week is actually a timely reminder that in times of trouble investors often see real estate as a ‘safe haven’.  Property is simply not as susceptible to volatile price movements as the markets.

So I anticipate the outcome for property may be twofold.  If the turmoil continues I think we may see an increasing number of high end properties come onto the market as people active in the sharemarket look to consolidate their finances. 

At the same time I do expect an increase in the number of buyers looking for opportunities to invest in property showing good rental returns and the potential for healthy capital growth. 

The question for prices will be determined by which of these two factors will be greater but either way I do believe there will be more positive activity in the property market in the wake of events this week.

Is it really only a month ago that we were all sweating on news of the RBA decision on interest rates?

With rates on hold we’ll now have endless commentary about the impact on consumer spending and the property market.  Personally I’m starting to think the cycle of speculation and evaluation around the announcement is more detrimental than any actual move in the rate.

There is definitely confusion in the market and it comes on the back of what appears to be genuine confusion amongst commentators and economists. 

If the ‘experts’ can’t agree on the health and outlook for the economy it’s certainly difficult for the man on the street to make a confident decision about whether or not to buy or sell.

And that’s certainly what we’re finding with the people coming through our door.  Usually people come in knowing they want to buy or sell.  Over recent months most of our clients are coming in looking for answers because they can’t get a clear picture about what the market is going to do.   The recent US debt crisis added to the uncertainty.  The property consumer understands clearly that our property market is linked to international events eg the GFC. 

I have to admit I’m also fining it difficult to determine exactly where the market is heading.  I was braced for a tough July but our results were good.  We have had 4 Auctions in the last 10 days – 100% clearance rate. Its all about a willing seller and a willing buyer.  Deals are tought to do but they are being done.  

I’ll start this post with news that might surprise you - we have had a good turnover of properties throughout the month of July which is really great but it certainly goes against the general market analysis. Overall I agree that it’s a disappointing market out there for vendors right now.  Sure July and August are always slow months but I have a feeling it could get worse rather than better as we head into the usually busy Spring selling period. 

At the moment with many of our clients we are working through scenarios to help them make the right decision about whether now is the right time to sell their property. As I’ve said we are achieving results for clients but those clients are going into the process with clear and realistic objectives. It reflects the fact that there is an increasing level of sophistication to the domestic homebuyer in Australia these days.  We’re all conscious that the debt crisis in the United States and the ongoing economic problems in Europe have the very real potential to negatively affect the Australian economy. 

 It is undeniable that the situation in the US right now is causing nervousness that is being felt by buyers and sellers on the streets of Pyrmont and Crows Nest as they enter our offices. So while on the one hand tomorrow potential investors will be trawling through the Saturday real estate pages they will be doing so with one eye also reviewing the latest developments in Washington.

Interest rates on hold for another month.  As usual the announcement was reported as good news for households and a huge relief for the struggling property market. But when I heard the announcement on Tuesday it made me wonder if the already cautious consumer will see it as good news or bad news?  Good to know that the cost of money won’t rise but bad in that it reflects a less than buoyant economy.

Unfortunately I’m not sure it will have much of an impact on the property market in the short term.  A recent Newspoll found ‘35 per cent of respondents expected their standard of living to get worse in the next six months’ and that negative sentiment is definitely flowing through to decisions about property. I think the outlook really depends on whether you’re a ‘glass half full’ or ‘glass half empty’ type of person.  Interest rates on hold, prices steady and optimists are excited about the opportunity to do a deal while others are depressed that property values aren’t what they used to be.

I was taken with a comment by Ross Gittins in the Sydney Morning Herald at the start of the week when he said “the gloomy talk doesn’t fit with the objective indicators.  Will we snap out of it, or could we talk ourselves into genuine poor performance?” In other words we should be careful what we wish for!

It was interesting to read research released this week which found Australians still aspire to own our own home but increasingly we’re realising that ‘home’ might actually be a flat or townhouse.

Owning a home remains a benchmark of stability and success for Aussies but the “Being Australian’ study reflects the reality we are seeing of potential buyers coming through our doors.  It found that people are ‘redefining the dream to overcome the housing affordability issue.’

I think that's one of the most significant and long-term outcomes to emerge from the GFC. Despite prices dropping back from the pre GFC highs to levels that now represent good value buyers continue to be very measured when evaluating their property options.

Compromise has always been key to negotiating a successful property deal but these days buyers are coming to the table already having curtailed their property expectations.  They are better prepared to settle for a little bit less, or at least something different from the old fashioned quarter acre block.

For example we're seeing a change in the demographics exploring our Sydney city portfolio of apartments.  Families and 'empty-nesters' are increasingly considering apartment living. No garden but The Domain and the Botanical Gardens are right next door.

What it does mean is that the deals are harder fought because buyers are only prepared to compromise so far.

The end of the financial year is looming and from the endless sale catalogues and special deals being advertised it appears that retailers believe the 30th June is the perfect time to get out and start spending. Or at least they’re hoping consumers will start spending!  From all reports it’s been a very tough year so far for the retail sector.

Is it the same for the property market? Yes I think it is.  The much lauded ‘mining boom’ simply isn’t resonating through the rest of the economy.  We continue to save rather than spend even when faced with great deals…and without doubt there are definitely some great property deals around at the moment. Bascially I think we’re nervous.  Nervous about the economy, nervous about job security, nervous about short-term budgeting and long-term value.

As I’ve said in recent weeks we are selling property but buyers are moving with more caution than I’ve ever seen before.  And to be honest I think it could get worse before it gets better, especially because most commentators predict another interest rate rise which will further spook investors.But ever the optimist I do believe it will get better.  It just might take a few months and some slightly warmer weather. 

Phew.  Interest rates remain on hold for another month.  That’s a relief for the property market…for now at least. Unfortunately, I’m not sure how long it will last.

From where I sit, based on people coming through the doors of our offices, the release of economic data like employment levels and inflation might impact consumer sentiment, but a change in the interest rate directly impacts consumer behaviour. 

People don’t just feel nervous, they actually change their spending patterns. So if the RBA had decided to increase rates last week I would have anticipated an immediate slowdown in buyer interest. 

As it is the speculation amongst media and commentators that the RBA will increase rates in the coming months is going to motivate some potential buyers to hold on to their money and resist any temptation to take on more debt.

What to do if you’re a vendor in these uncertain times?  For those prepared to take on debt it’s a buyers market out there which doesn’t bode well for those looking to achieve maximum return on their property.

My main advice is to achieving the best price is to avoid the pressure of a sale deadline. We are doing deals but buyer caution means they are taking time to pull together. 

An auction campaign is the best way to show potential buyers you’re serious about selling. Often the property won’t sell on the day and the post-auction negotiations can be long and intense but in the end we are securing good deals.

There is no doubt it’s a stressful time to be in the market but I take confidence in the fact that it is still turning over.

I’m starting to think that media coverage of the real estate property market is more of a roller coaster ride than the market itself!  Rise. Fall. Bubble. Bust. Inflated.  Undervalued.  All topics and opinions that could appear in a single week of stories.

This week the headlines predominantly offer a more positive outlook for the market.  One report even went so far as to say that ‘upward pressure on house prices was starting to emerge.’

Yipee!!

Yes, I’m pleased but not unsurprised and I’ll keep saying it. That is, the underlying value of Sydney property will be retained across the inevitable rises and falls in the market from week to week.  The trick is not to panic and stay focussed on identifying the true value of the property.  That’s relevant advice to those buying and selling. 

For example despite the negative headlines that dominated over recent weeks we had very solid results for the month of May.  Good properties selling for good prices.

So yes, it’s undeniable that the media can impact sentiment but that’s because many people lose sight of the fact that the real estate cycle is a lot longer than the news cycle.

Next week the reports may be talking doom and gloom again but we’re already working hard and looking good to finalise an equal number of significant deals in June.

I was recently asked to identify the key metrics used by our business to monitor market activity.  So what do I look at before formulating my opinions and making recommendations to clients on the state of the market?

It’s a valid question given recent reports highlighting quite differing opinions about the myth or reality that is the Australian housing ‘bubble’.  Only last week the ABC reported on conflicting opinions and statistics coming from two of the key property market research firms.  (http://www.abc.net.au/7.30/content/2011/s3219511.htm) Some say ‘bubble’ others say ‘controlled correction’.At the same time economists, professors and politicians are all telling us the economic fundamentals for the country are strong, the numbers are good and the future should look rosy. But still the mood out there is as damp as the weekend weather.

I read reports from banks, newspapers and opinion makers. I review the property analysis and ponder the forecasts. All of which provide a good foundation but to truly gain insight into the market I focus on the feedback we get direct from market participants. We track who is looking, what they’re looking at and what they have to spend on rent and or purchase.  We monitor what has sold, how it sold, how long it took to sell and how much it sold for. And from where I stand there are some positives. People are looking at real estate despite being nervous about debt.  So don’t get depressed by all the talk of the depressed market. Instead make up your own mind and be realistic about what you want and can afford.

Goodness, what a week of negative headlines!  The media reports would have us think the real estate world is ending. It is undeniable that it’s tough out there.  As I said last week prices are lower and auction clearance rates are as low as they have been in years. But.  Properties ARE selling.  It is just bloody hard work and takes some serious negotiation skills.

I think the buoyant property market of recent years allowed many people, including some real estate agents, to believe property will simply sell itself: That the role of an agent was ‘facilitator’.  It’s when times are tough that real estate agents define their true value as experienced negotiators.

Savvy buyers recognise that now is a good time to buy which means the opportunity is there to sell.  But it is a balancing act.  Knowing how to manage the angst of vendors hoping to achieve a certain price in an uncertain market, against the determination of buyers to get a bargain and not overspend.  In that situation I say the same thing to both parties.  Be realistic and be prepared to compromise. 

I’ve read a few articles in the last week accusing real estate agents of self interest and trying to talk up the market because they have spoken out about the ‘current buyers market’.

Well I agree, right now is a great time to buy real estate.

Yes the new trend of the cautious Aussie consumer who is saving money rather than spending is impacting the market.  Property sales are slow and prices comparatively low with the stats showing the market is continuing to cool. But too often investors get caught up in the negative reports of falling values and fail to see that opportunity exists for buyers when the market is slow. That isn’t real estate self-interest.  That’s supply and demand, the economic reality.

Yes prices may be lower than those achieved in recent years but the underlying value of property in Sydney will remain.  They might take a while to get back to those seen before the GFC but buy at the right price and the opportunity for growth is there. Which means now is the time to negotiate a good deal if you’re looking to upgrade and secure a solid long term investment.

Last week saw the release of March Quarter house price report and on the surface it was pretty depressing reading with both house and unit median prices falling.  But in amongst the bad news were some interesting points which I see as positive for the future of the Sydney apartment market.

I’ve written before about the increase in consumer compromise in real estate. People are prepared to accept smaller living spaces if the overall quality of life is better particularly in relation to work, transport and services.  The traditional Aussie love of the freestanding house on a quarter acre block is being diluted by the tedious reality of the long commute!

A trend is starting to be reflected in the numbers with the March Quarter figures showing unit prices fell by less than house prices.  Also reported was the fact that annual capital growth for units in Sydney was slightly higher than that of houses.

The latest stats show demand for units is stronger than houses with national unit rentals growing by 4.9% while house rentals grew by 1.3%.

These trends are good news for investors.  Apartments are more affordable but they are increasingly delivering good capital and rental returns even in comparison to houses. 

Is it just me or does anyone else think we have become a nation obsessed with cooking shows? As one series ends another begins to feed our voracious appetite for high class home cooking.

I think it reflects a fundamental change of attitude that’s also evident in the real estate market.  In direct contrast to the high living, high spending, high debt culture that dominated before the GFC property buyers today are much more cautious and much more inclined to ‘make do’.  It’s the masterchef ‘let’s make our own jam’ attitude.

For the first time in years we are now a nation of savers.  Despite reports the economy is strong, unemployment is low and the future looks good we’ve had three years of doing it tough. We’ve grown used to being frugal and talk of future price rises in fuel and electricity aren’t helping.

Certainly those looking to purchase property are much more risk averse.  It’s usually the banks who tighten the screws on home lending but we are seeing home buyers themselves re-evaluating their requirements.  Yes, the extra bedroom or the ensuite bathroom would be lovely but suddenly it is no longer a necessity. 

So if you’re looking to sell, be realistic about your prospects.  Don’t be discouraged.  There are definitely buyers out there but the deals are hard fought.

The tag line has always been ‘Queensland: beautiful one day, perfect the next’ but following the tragic January floods it seems many people might be are questioning if that is still the case.

In the week that the Commission of Inquiry into the Queensland floods begins it is timely to reflect on the impact of that crisis on the local property market.

I’ve just visited our Portside Wharf office in the Brisbane suburb of Hamilton and I think the ‘Beautiful one day, perfect the next’ tagline still stands true.  It is a magnificent city.  The strength and depth of the Brisbane community spirit shone through during the floods and I think that spirit, together with the usually glorious Brisbane weather, will be the foundations on which the area will rebuild.

For the moment however emotions are still very raw and that is being reflected in the local property market

Despite its riverfront location the Portside Wharf wasn’t directly impacted by the flood.  The shops and restaurants continue to thrive and work on the latest luxury apartment complex development released to the market, The Promenade, continues.  However as a result of large numbers of property coming onto the market in Queensland and the national trend to act with caution prices have suffered.

The result is a great opportunity to secure a good deal on a prestige Brisbane property.

A new month but in real estate terms April is not just any month. It represents the start of the countdown to winter...eight weeks until that mystical selling deadline.

It's a bit like Christmas. For no logical reason people regard the start of Winter as the end of the selling season.  As a result early April often sees influx of property onto the market with vendors keen complete their marketing campaigns and sell before June.

I don't see the reason for the panic.

Sure the weather turns colder and the light fades but the right presentation can accentuate the warmth of a property showcasing it as a haven from the elements.

And based on the continuing growth we are seeing in parties genuinely interested in buying I don't anticipate interest in property cooling in line with the weather.

The 'tyre kickers' might not venture out when it gets chilly but our experience so far in 2011 is that serious buyers are around and willing to pay the right price.

So my message for this week is don't panic. If you have a property to sell it's better to do it right rather than do it to an unnecessary deadline.

Don't drop your standards and compromise your campaign just because the temperature is dropping.

Right.  Let’s get on with it!!  Yes the election is over and the result was not unexpected so it’s time to move on. 

We can now all watch with anticipation to see how the Coalition Government will deliver on their promises to address Sydney transport and planning issues.  Not easy issues to fix and certainly no short term solutions but lets keep our fingers crossed because they both have the potential to directly impact the local real estate market.

I see the clear election outcome as being welcome good news after what has been a harrowing start to the year.  The dreadful floods, cyclones, wars and earthquakes which have dominated the headlines might not have directly impacted the Sydney region but there is no mistaking international bad news does create negative local sentiment. 

As I have reported in earlier blogs we have seen a significant increase in the number of potential buyers on the property hunt.  That’s exciting but it’s also undeniable that they remain conservative when approaching property decisions.  It seems buyers remain uncertain about the impact of world events on local economic sentiment.  The change in government may be the event that triggers a more positive local outlook and helps people make proactive property decisions.

So I’ve said it before and anticipate I’ll say it again - the market is alive but negotiations are hard fought.

It’s hard to fathom the rationale behind some of the recent actions taken by the New South Wales Government in relation to the Barangaroo precinct.

I know there are many who disagree but I think the proposed development is exciting.  Yes it pushes some boundaries but often to achieve greatness we need to be stretched beyond our comfort zone. Barangaroo will deliver much-needed office space for our city and create enhanced public gardens and shared spaces along the Harbour.

What isn’t so exciting is the way development has been mired in bureaucratic controversy.  Late night and last minute shenanigans at the highest levels of government have severely undermined the credibility of the development in the eyes of the public.

There are groups who disapprove of elements of the Barangaroo design.  It’s a public space and the development will have an impact on the environment and surrounding areas.  As such those concerns must be recognised and addressed.  Developments nearly always involve elements of compromise.

What has been exposed by the Barangaroo debacle is the murky world of planning oversight and approvals in New South Wales.  A lack of clarity around the processes and decisions related to planning is bad news for all parties.

The tragedy is that legitimate developments like Barangaroo might be tainted or at worst completely derailed, not because it is unsatisfactory, but rather because the bureaucracy has failed.  And that’s bad news for our economy, our environment and our city.

With only two weeks to run the NSW election campaign continues to underwhelm. The issue of particular significance to me is Sydney transport and the issue of particular interest is the development of the Barangaroo precinct. Both are generating big headlines but frustratingly they’re small on detail. 

Ever heard of a politician storm? It involves lots of threatening wind, thunder and lightening but in the end none of the promised rain. We all know that Sydney is choked and it’s an issue that hasn’t been adequately addressed in terms of long term planning and infrastructure development.  It’s one of the main reasons why real estate on the CBD fringe has continued to deliver sizeable capital growth in recent years despite an overall slowdown in the market.  (Check out the March issue of AFR Smart Investor which reports The Rocks, Waverton, Milsons Point, North Sydney, Greenwich and Woolloomooloo are among the top 100 areas for capital growth in NSW over the last year.)

People are choosing to compromise a little bit on space in order to live closer to their city work. Who wants a quarter acre block if all the time you could spend enjoying it with the family is instead spent in commuter hell.  So while I’m pleased that the areas where Morton & Morton have expertise are increasing in value it would be even more pleasing if this election delivers a government with the courage, conviction and foresight to deliver some detail and solutions to the transport nightmare that is Sydney.

Wow!  I’m really excited to be able to report that the last couple of weeks we have seen a massive increase in buyer interest.  That includes a record number of people viewing our property listings online and a huge spike in the number of potential buyers registering their interest in purchasing. Okay so that hasn’t yet translated directly into an increase in sales but at least the potential is there and it includes properties at the higher end of the market above $2 million. 

I think it shows buyers are still sitting on the fence and I anticipate they may stay perched there until after the state election.  While the outcome of the election probably isn’t going to surprise anyone it seems speculation around what a change in government might mean to the economy makes people cautious.

That said it is a very positive sign to see genuine buyers out looking and we are starting to see an increase in the number of properties under offer.  So while caution remains it appears indications from the Reserve Bank that interest rates will remain on hold, continuing strong demand in the rental market combined with news that the building sector contracted for the ninth consecutive month are all setting strong foundations for the security of property market. I’m looking forward to the months ahead.

‘Tax homes’ was the headline screaming from one of the Saturday newspapers. Not my idea of a great read at the start a day of open for inspections. The idea suggests taxing owner-occupied homes as a way of ‘arresting soaring house prices’. What the??

Okay so reports indicate that Sydney is one of the least affordable property markets in the world.  But is taxing the family home going to address that problem? 

The people who walk through the door of our office looking for a home have worked out what kind of property they need and what they can afford to spend.  Sure they also recognise the property will represent their biggest family asset and want it to be a sensible investment.

But the affordability issue of Sydney property is not the result of over excited investors looking for ways to minimise tax. It’s the result of the imbalance between supply and demand that we learnt about in high school commerce lessons.

I certainly support the Coalition policy to repeal the property tax introduced last year for residential and commercial properties valued over $500,000.  It makes sense to me to be abolishing taxes that add to the cost of buying or building a home rather than introducing new costs.

And I’m not on my own.  That was definitely the view of most of the people I chatted with at our open for inspections on Saturday.

Over recent weeks the news has been full of negative reports about the flatlining of the real estate market.  It’s interesting that a stable market is always reported as negative when it actually represents a positive opportunity for that very important, but often overlooked group of people…. buyers!

For those people devoting their weekends to pounding the pavements it must be thrilling to read prices are stable.  Also we are seeing potential buyers who were dispirited by high prices re-enter the search in the hope of securing their perfect property at an affordable price. That’s great, except that at the same time vendors reading reports of flatling prices get nervous and respond by withdrawing their properties from sale. The result.  More buyers. Less properties. 

Property owners should remember there is more to real estate than just a boom or a bust cycle.  There is a place in between where prices remain stable but at that point that basic principle of supply and demand becomes a fundamental driving force. Often the savvy vendor is the one that leaves their property on the market even when the word on the street is that the market is slow.  The opportunity is there to capitalise on the increased buyer interest and activity and secure a great price.

My blog last week in which I spoke about my belief in the auction process to deliver optimum returns prompted some interesting feedback. One of the most cutting responses suggested agents advertise the auction guide price as low as possible low to entice potential buyers and they use that falsely generated interest as the excuse to increase the guide price during the marketing campaign.

As far as I’m concerned there are two big things wrong with that assumption.

1. Getting lots of people through the door doesn’t guarantee a sale. It is about getting the right people through the door and setting the right expectation about value and affordability of the property.

2. In the current market buyers are very conscious about sticking to their budget. The days of out-of-control auction day bidding went out with the GFC.

An auction does require a guide price to be set and the agent must be able to clearly explain and justify the estimated selling price they recommend. As I said last week the benefit of an auction is that it allows for some flexibility and therefore promotes negotiation between buyers and vendors.  That process of negotiation is facilitated by a good real estate agent…..it is not manipulated by the real estate agent. 

Surprise surprise - the Federal Government hotline to dob in a foreign real estate buyer hasn’t seen a lot of action since it was launched in the middle of last year. Just over 131 calls, 15 property sales blocked and only a couple of those appear to have been buyers from China. 

So was it really the case that ‘Chinese buyers’ were flooding the domestic real estate market and inflating prices beyond the reach of Aussie Mums and Dads?  Or was it just that prices were rising because of normal, everyday market forces of supply and demand and the reported real estate ‘anecdotes’ revealed a hint of xenophobia rather than a mass influx of foreign capital.

I have no problem with national pride, indeed I celebrated our great Aussie identity last Wednesday along with the rest of the country.  As a real estate agent I also see first-hand the heartache and frustration experienced by many families struggling to find properties that meet their needs and their budget. But I don’t think that heartache was or is the fault of foreign buyers or even Chinese buyers which is why the changed foreign investment rules haven’t had any impact.  Making it harder for foreign investors to purchase Australian real estate won’t automatically make that real estate more affordable for domestic purchasers.

Sydney is a great city. We have an increasingly centralised population, a growing population and a city that is generally serviced by poor transport with ever-diminishing space for development. Those factors together with rising interest rates and continued economic uncertainty internationally give a far more realistic picture of why real estate remains a fantastic, but challenging, investment to negotiate.

In my last blog before Christmas I said real estate agents are not fortune tellers.  Well this week I’m going to try my hand at exactly that and attempt to outline my vision for the real estate market in 2011.

Morton & Morton has had a cracking start to 2011 with the sale of a $6.35 million dollar property in Pyrmont and keen interest in all our open for inspections.  This follows a much stronger than expected final quarter for 2010.

That might appear to fly in the face of the prediction by APM Senior Economist Andrew Wilson on DomainTV (great new initiative!) that on the back of a poor December it will be a slow start to the year.  However I don’t disagree with his analysis.  We’re certainly not getting carried away just yet.

The sales achieved by Morton & Morton are exciting but they have been the culmination of significant negotiations based on some very long held client relationships.  The Pyrmont sale is undeniably a great way to generate motivation at the start of the year but it wasn’t like someone walked in off the street and bought it.

So I think the 2011 year is looking promising for real estate but it won’t be an easy ride.  We’ll need to continue to work hard to find the right buyers and negotiate the best price.

As I return to work after a great break over Christmas the horrific Queensland floods serve as a sobering reminder of the true value of property.

For most of us the purchase of a house is our biggest lifetime investment and much of the discussion around real estate is about ‘cost’, ‘value’ and ‘return’.  However as we watch the devastating pictures out of Queensland, and now in Victoria and Tasmania, we are confronted with the reality that a house represents so much more than just an investment.

It is a home. A place of family and treasured memories.

The pictures of the homes destroyed by the floods are as heartbreaking as the strength of will demonstrated by the residents to rebuild and stay positive is heartwarming.

So as another year of intense speculation begins about the existence of a property bubble, the level of interest rates and the possible impact of ongoing economic explosions in Europe I think it would serve all in the real estate industry well to reflect.

We often focus as real estate agents is to ensure the property is suitable, affordable and a good investment.

The reality is we are in the business of helping people find the right property to become a home. 

That’s a pretty good job.

This is my last blog for the year so I was going to give you a witty real estate version of the twelve days of Christmas to celebrate.  Something like ‘On the first day of Christmas my real estate agent gave to me….an estimated selling price for my property’.

Then again..perhaps not!  With only four days until Christmas I’m not sure I have the energy and I’m sure you don’t have the stamina to read it!

It has without doubt been a tough year in real estate.  The Global Financial Crisis hangover continued to affect confidence, interest rate rises ate into the back pockets of investors and the Federal election interrupted the traditional peak selling season.  Throughout the year a whole lot of time was spent analysing whether or not the Sydney real estate market was in a bubble and predicting the bubble was about to pop.

It didn’t pop and as I’ve said before I don’t actually believe a bubble exists. Whilst I anticipate the real estate market in the new year will continue to ‘bubble along’ I mean that in the sense that I believe the market will move and increasingly pick up speed as we move further away from the GFC.

So I wish you all the very best for the festive season and look forward to an exciting and prosperous new year real estate market.

Last week I wrote about my Christmas wish list. This week, in keeping with the theme, I thought I’d get in early and start to consider my New Years Resolutions. My first resolution will be to try to stop losing my cool when I read claims that real estate agents regularly and intentionally over estimate the selling price of property. Last week a review into vendor disclosure was presented to NSW Labor Party with the principal recommendation being that a pest and building report be a mandated inclusion in auction sale contracts for residential property.

I’ve read the report and the main point I take exception to is the claim by the author of the report, Matt Brown MP as reported in the media that if adopted the reforms would ‘save people from being out of pocket when they had been induced by an unrealistically low advertised price into chasing a property they couldn’t actually afford to buy.’

Okay so sometimes a property does sell for more than the estimated selling price but that doesn’t automatically mean the agent has misrepresented the value. Morton & Morton has a comprehensive checklist that must be completed to help guide our agents when determining an appropriate selling price.  The checklist conforms with all legislative and licensing requirements including those outlined by the NSW Office of Fair Trading.

A reputable, experienced real estate agent carries out extensive research and property inspections to determine an estimated selling price together with analysis of potential demand and buyer interest. 

But the reality is we aren’t fortune tellers.

Santa is everywhere so I thought I might as well get in on the act and also put in my Christmas wish list. My main wish would be for 2011 to be slightly more predictable. Post GFC I thought 2010 would be a ‘steady as she goes’ kind of year but it’s unfolded that interest rates and politics not to mention property prices, the weather and now The Ashes have all proved difficult to call.

Predictable might sound a little boring but the reality is boring isn’t a bad thing in the context of buying and selling property. Income security and budget consistency are crucial foundations for people considering investing in property.  As such I anticipate rental returns will continue to rise in the new year and I expect an increasing level of confidence in the property market.

Why? Well for one the good news is that in 2011 at least the domestic political scene shouldn’t throw up anywhere near the level of drama we have seen in the last 12 months. I don’t think many people would dispute that a change in NSW State politics will not come as a surprise. So even the March election looks predictable and that’s positive.

In terms of that election I’d be interested to find our exactly where Barry O’Farrell and the Liberal Party stand on the issue of the Barangaroo development.  I’ve read the Party has commissioned reports recommending Darling Harbour as the best option for new convention centre facilities but I haven’t been able to work out what that means for the Barangaroo plans.

One thing I am prepared to predict is that the Pyrmont precinct will remain ‘the place to be’ in 2011 and into the future.  All signs point to the area around Darling Harbour and Jacksons Landing further developing into a hub of business, tourism and entertainment facilities.  So after I post this Christmas wish letter to Santa I will sit back down in the Morton & Morton office in Pyrmont Bay and get to work granting some wishes of my own - matching buyers to sellers of the premium Pyrmont properties we have on our books.

The undeniable truth evident from the debate about Barangaroo and the proposed 191 metre luxury apartment development at Circular Quay, is that Harbour views are still in hot demand and demanding top dollar.

So is there a chance that oversupply will impact the investment returns of harbourfront properties? 

I don’t think so.

You don’t have to be Einstein to realise that a premium is guaranteed for properties with views of the water. But from my experience there is also strong demand for harbourside properties that don’t offer water views.  For many buyers ‘near enough is good enough’.   

At Woollomoolloo Wharf prices for apartments on the east side of the wharf are on average slightly lower than those on the west but demand for both is still healthy.  Some buyers prefer the more protected aspect offered by the east facing properties knowing they still have the harbour at their front door.

Interestingly in a number of the harbourside developments managed by Morton & Morton we have seen a trend emerging of people opting to ‘try before they buy’.  Over the last 12 months we have we had five sales of Wharf apartments by buyers who were previously tenants in the building. 

And post the GFC the demand for corporate rental properties is definitely on the rise.

I often deal with relocation companies looking to find the ideal home for international corporate clients.  One of the main criteria in that prestige leasing market is harbour views which is why vacancy rates for apartments in Macquarie Street, Woolloomooloo Wharf and Jacksons Landing remain low.

People want to be as close as possible to the amazing and unique view that is Sydney Harbour. To also have the buzz of the CBD within easy walking distance is a bonus.  So in my opinion, to quote a Kevin Costner movie slightly out of context…’if you build it the buyers will come’.

Is anyone else getting a bit fed up with the continuing debate around the proposed Barangaroo development?  The furore is intense and opinions massively divided.  Highly desirable, demand driven, community focussed, environmental leader. Too high, too wide, too much shadow, unnecessary, environmentally irresponsible.  

As a Sydneysider I want the integrity of the Harbour to be preserved but I also feel our great city should aim to be a leader in design and innovation.  As a father I’m conscious of how actions today can impact the environment of my children. So should we be looking to urban sprawl or advocating higher density? As a real estate agent I understand the premiums paid for highly desirable harbourfront properties – and the desire of existing property owners to protect the integrity of those properties.  As a businessman I know that good office space in the right location with the right layout is critical and I know that’s becoming increasingly hard to find in the Sydney CBD. As a real estate agent, father and Sydneysider I also understand the true value of community and communal spaces on the Harbour foreshore.

It is undoubtedly a complicated issue but it’s the politics that I find most frustrating. Decisions need to be made as a result of genuine debate based on clear facts. Of course the final outcome will not please everybody but the process needs to be transparent. 

From where I sit Lend Lease are putting all their cards on the table. So too are those who oppose the development such as the Barangaroo Action Group.  The confusion starts when you try to determine which government, council, authority or Minister has the final say!  Just yesterday there was an article on questioning the authority to approve aspects of the development. Are our politicians desperate to claim ownership, pass the buck or simply muddy the waters sufficiently so at the appropriate time, depending on the community response they can do both!!

For regular readers of my blog you might recall just over a month ago I said it was my belief that the market for properties in the $1.3 million plus bracket was starting to improve. Well I’m very pleased to be able to report that it appears I was right.

I’ll admit at the start of last week I was starting to think I’d called it incorrectly but by the end of the week the team at Morton & Morton had successfully negotiated the sale of several properties in excess of $2 million. 

Don't get me wrong, they were hard fought deals, the buyers were cautious and a couple of sales don't exactly reflect a boom.  But despite the economic doom reported in the media over recent weeks, interest rate rises and the strong Aussie dollar the fact is the properties were sold and at healthy prices.

It gives me renewed confidence that the market for properties priced above $2 million is starting to improve after a very tough year.  This late Spring surge makes me think it will be busy right up until Christmas rather than the traditional slowdown starting early December.

And already we have a healthy pipeline of properties that will come onto the market in 2011.  All of which is exciting stuff.

The interest rate rise last week has been followed by reports that the real estate market is faltering.  Some say Australia is experiencing a real estate bubble that is about to burst. Others claim housing prices are sustainable at their current levels.

Personally I think the commentators and ‘experts’ should chill out a little.  Yes the GFC hit the local real estate market hard but still they claim a ‘bubble’ exists. 

When I’m asked about the prospect of the domestic real estate market going into freefall I answer with a question.  If the GFC didn’t pop the bubble then what will…if anything?

Yes the weekend auction clearance rates were down, buyers are nervous about the uncertain financial markets and we have seen a slowdown in enquiries.  Yes the Commonwealth Bank move to increase rates above the Reserve Bank level was cheeky.

But now, by all accounts, we have returned to the normal cycle of ‘rise and fall’ rather than ‘boom and bust’. 

For borrowers the prospect of new rules on mortgage exit fees should make it easier to switch lenders and so hopefully ease some concerns about being ‘locked in’ to an unsatisfactory financial arrangement.

Also buyers should recognise that the housing shortage in Sydney will not disappear overnight. Residential vacancy rates fell to their lowest levels in 12 months in Sydney during September, down to 1.2 per cent.  That’s good news for rental returns.

For Morton & Morton our focus continues to be understanding the pressures and price points of the buyers we have coming through the door.  By matching the right buyer to the right property the only bubbles we expect to see burst are the ones in the celebratory bottle of champagne!

I was interested to read late last month that the Hong Kong government has introduced new measures to try to cool the domestic property market. 

AFP reported that the new measures will ‘particularly hit wealthy investors from mainland China, whose buying spree in high-end apartments has done much to stoke fears of a new bubble in the Hong Kong economy’.

Sound familiar?

In April this year the Australian Federal Government reintroduced foreign investment laws that restrict foreign investors to purchasing only new homes and allows temporary residents to buy existing properties only while they reside in Australia.

The change came on the back of media reports suggesting foreign investors, predominantly from China, were responsible for the high price of property which was forcing local investors out of the market.

Morton & Morton was extensively quoted as our statistics showed a significant growth in the percentage and value of property we had sold to Chinese buyers between 2008 and 2009.

So what has been the impact of the revised foreign investment rules?  Has demand from foreign buyers retreated and subsequently allowed more domestic buyers to invest?

Not from where I sit.  We continue to see interest from Chinese buyers equal to the months leading up to the change, however a majority of our business continues to be with domestic purchasers as it always was.

Yesterday I attend a briefing by Lend Lease on the development of Barangaroo.  It was very interesting to hear their perspective on the site and see in more detail what is planned.  I can see why there is controversy but I couldn’t help but feel excited listening to the Lend Lease people about their plans.  It is a very complex development but I am of the belief that what ever is built there needs to be exciting and dramatic.  What is proposed will revitalise this part of the city and I think add considerable value to our market place.  Morton & Morton sells a lot of high end apartments and this development can only aid in the maturing of this market place. 

There are a number of websites that give further information

These 2 are Lend Lease sites

http://www.thebeautyofbarangaroo.com.au/
http://www.barangaroosouth.com.au/
 

The Barangaroo Delivery Authority has a site as well

http://www.barangaroo.com/
 
There is a site for the Barangaroo Action Group

http://barangarooaction.com.au/
 
All of the above make for interesting reading.   The Sydney City Council is running briefings as well which I am planning to attend as well. 

There is no doubt that there will be short term pain as the area is constructed and this will have an affect on rentals in the area.  We are finding the market in Kent Street North is experiencing some confusion and hesitancy as everyone watches to see the impact of Barangaroo on amenity and view lines.  This will clear up over time.  I think in the long term, everyone will benefit.

Feel free to send me you views as I am interested to hear. My email is ewan@mortonandmorton.com.au.

Last week the issue of tenants’ rights hit the media with uproar on talkback radio and online forums responding to news stories about a tenancy database which allows real estate agents to find out when a tenant is considering moving house.

So is Morton & Morton checking up on our tenants?

You bet we are.  As property managers it’s absolutely our responsibility to ensure the properties we manage are occupied by reputable, reliable, honest tenants. It’s also our responsibility to ensure the properties are maintained in accordance with the rental agreement.

That means doing a full background and reference check as well as a minimum annual inspection of the premises.  So yes Morton & Morton uses tenancy databases, including some supplied by the TICA because they’re an invaluable tool for our business. 

We don’t use Virtual Manager but I must admit the ability to get advance warning on the intent of a tenant to move could be handy. 

That’s not because we want to be petty and malicious and try to block the tenant leaving! We don’t like unhappy tenants…more often than not unhappy tenants lead to unhappy landlords so everybody loses.  Rather it would give us more time to plan and better manage the prospective tenant changeover.  

Instead what Morton & Morton currently uses is good old fashioned courtesy.

Our Property Managers take the time to get to know the owners, properties and the tenants under our care. Click here for more information. 

Staying in touch with our tenants means we’re in the loop so if there is a problem or if their circumstances change and they think they want to move the tenant simply talks to us.  

I’m no fortune teller but I don’t think you have to be to predict that the furore around the proposed Barangaroo redevelopment will continue long after the first sod has been turned….no matter what the final design.

Developing along the harbour fore shore has always been controversial.  It’s a magnificent and very unique harbour which should be offset with only the most magnificent and unique developments.  The Opera House is a case in point. The problem is to achieve something extraordinary, community and governments need to be prepared to think beyond the ordinary.

That’s what happened when the community and union movement joined forces to save the Woolloomoolloo Finger Wharf from demolition a decade ago.  As the principal property managers for the Finger Wharf, Morton & Morton knows first hand that is a very successful development.

From derelict to desirable the Finger Wharf shows how commercial, residential and tourist interests can be accommodated in a development which also recognises the vital role played by allowing public access to the site and public access to the main design feature of the development…the harbour.

The questions and the controversy will continue around whether or not the Lend Lease development plan can live up to the iconic status such a prominent position deserves. As I said, I’m no fortune teller but I hope the current debate around Barangaroo will result in an amazing harbour fore shore precinct Sydney can be proud of.

Here’s hoping.

I was quoted in the paper on the weekend in an article canvassing opinion on the Spring market for apartments.

In a double-page article the main view expressed was that it’s a sellers market. The surprising announcement last week that interest rates were on hold, the shortage of desirable houses and apartments available, together with the numerous government incentives to assist home buyers all reflect a strong market. (see my Blog from last week)

But an important point to remember, that was also highlighted in the piece, (SMH Domain Oct 9-10 ‘Pick wisely this spring’) is the need to be strategic whenever buying and selling real estate which should never be considered a ‘sure thing’.

Yes I believe the future does look good for premium properties.  As I was quoted….“In the worst of the GFC prices came off 20 per cent but we are seeing a recovery.  If you have an apartment at $500,000 it’s like a zoo and anything up to $1 million is fine..even $1,000,000 to $1.3 million is pretty buoyant. But anything above that it’s been soft, until the last week.’

Once you hit that premium price bracket it becomes a specialist market that requires a specialist team to help achieve the right sale outcome.  Morton & Morton has the experience, the right contacts and the track record in managing successful sales of prestige harbourfront properties.

Okay so interest rates are tipped to rise today.  That means tomorrow the news will probably carry headlines about the impact on the Aussie family budget and those stories will be followed by others talking about the flow-on effect on the real estate market.

But what does an interest rate really mean for those looking to buy or sell a property?

Yes it can mean buyers are more price sensitive but it doesn’t mean potential buyers withdraw from the market completely.  Interest rates shifts should not be evaluated in real estate isolation.

For example buyers may baulk at the impact of an interest rate rise but remain motivated to invest given continued evidence that Australia, and in particular Sydney, is suffering from a chronic and worsening housing shortage. 

At the same time competition amongst mortgage lenders has returned to pre-GFC levels so opportunities do exist for buyers to secure favourable finance terms for their home or investment property. Take an interest in the commentary around the rate rise and take it into consideration when setting your budget to buy or your price to sell.

But remember that the media furore around a rate rise does not necessarily have to reflect your own ambitions to achieve a successful property outcome.

Successful real estate relationships are built on a foundation of trust.  This applies when buying and when selling a property and it’s something we take into consideration across all aspects of our business. Crucially it applies to use of our database for marketing properties. 

Usually agents develop their own database of contacts which is tightly held by the individual and rarely shared.  We have a centralised database so our clients have access to the contacts developed by all our sales agents. 

However we are very careful how that database is used, recognising the information it contains has been supplied in good faith. Rather than a broad brush approach Morton & Morton is very selective in who we contact about new listings.  We can be selective because our extensive database allows us to segment according to key property search criteria including price, location, size and, of course, property type.

Our aim is to match the right people to the right property. Morton & Morton do not see true value in telling a client we have promoted their property to our entire database because for a large percentage the property will simply not be suitable.

The risk then is database fatigue.  To add true value for our clients we ensure those on our database can be confident that receiving a communication from Morton & Morton means we have something relevant to tell them. Doing so retains the element of trust with those on our database and in turn delivers cut-through results when we are marketing a property. 

Professional photography

It’s said that a picture is worth a thousand words and that’s definitely the case in real estate.  Don’t underestimate the influence of good photography in helping to sell a property.  Good photos will get people through the door for inspections which is the crucial first step to securing a buyer.

Light, colour and proportion are all key elements of a property that professional real estate photographers can maximise.  Never ever be tempted to save money in your marketing budget by promoting a property using your own happy snaps…it will more likely cost you money in the end.

Property video

These days photographs are only one part of the property portfolio story.  If a picture is worth a thousand words a video is worth much more than that which is why Morton & Morton are now offering video tours for our property listings.  These videos are hosted by an agent who points out the key features while walking through the property.  Seeing is believing and video tours help deliver that outcome. Our videos are also not limited to just the property but can incorporate the selling points of the location which is hugely influential when making property decisions.

Check out these current property videos to see what I mean.

8 Union Street, McMahons Point

10 Murdoch Street, Cremorne

2/25 Pirrama Road, Pyrmont

Rather than me explain what’s involved I’ll let the videos tell the story.  

Real estate can be a high stakes game and it can also be a highly emotional process. At Morton & Morton we know that if we are to develop the right relationship with our clients we need to start with great relationships within our own team.

Morton and Morton Real Estate is proud to be recognised as one of the 2010 BRW Top 50 Best Companies to Work For in Australia. As the only real estate agency on the list we are very pleased to be seen as a leader not just in our industry but across the board. On the back of the BRW announcement many people have asked what makes our business different. Check out the conversation with Kirsty Spraggon on her blog.

Real estate has traditionally been seen as a job rather than a career but Morton & Morton is committed to nurturing and providing a clearly defined career path for all our staff. As an industry we have gone from the best of times to the worst of times over the past eighteen months.  As the real estate market has faltered we have utilised the experiences and expertise of our senior agents to educate and maintain motivation levels of our team and to continue to achieve the best outcomes for our clients.

Even with the market tighter than it has been in recent years the temptation is always there for a vendor to price a property higher than its true value. Don't.

The justifications for overpricing can seem appealing.  A vendor might want to advertise their property at an inflated price in the hope they will achieve absolute top dollar by giving themselves room to negotiate on the price. More money is a great incentive, but the negative implications of asking too much for your property can be far more devastating. The possibility of underwhelming potential buyers is very high and very dangerous.  A higher price bracket means higher expectations.  The last thing a vendor wants is for viewers to leave a property with the impression it’s not worth the asking price.  A bad vibe is hard to overcome even if the price is reduced.

Potential buyers are usually very careful and only view properties that fall within their price bracket.  Nobody wants to fall in love with a house they can’t afford so in trying to get a higher price you may discourage viewers who could realistically be potential buyers. It is also crucial to remember that real estate agents have a licensing obligation to provide both vendors and potential buyers with a true evaluation of the estimated selling price of a property.

So when setting the price of your property take very seriously the valuation you have been given by your agent.  A realistic price is the best way to achieve a realistic outcome.

That’s the dreaded question of real estate.  Everyone wants to know but sometimes the truth is not the answer they want to hear.  Of course it’s a very important question so what is the correct etiquette and expectation for asking and answering a question about the value of your property?

1. Do your own homework:
It might sound counter intuitive but it’s a good idea to have your own estimate before you ask an agent for their opinion.  That means doing some homework.  List the positives of your property but also be realistic and list the negatives.  Research what has sold in your local area, focus on comparative properties and check how long the properties were on the market as well as the selling price compared to the asking price. 

2. Be aware:
Don’t expect an agent to give you a property value on the spot and if they do be wary.  A true estimation will be based on more than just a walk through your home.  The NSW Office of Fair Trading (hyperlink to relevant page?) identifies nine criteria that should be considered when determining an estimated selling price, many of which require research.  At Morton & Morton we have incorporated those criteria into a compulsory checklist which ensures our agents must complete to help us make a confident, informed evaluation.

3. Be prepared:
There is a chance your agent will give you an estimated selling price lower than you want, need or were expecting so prepare for the possibility of bad news.  At Morton & Morton we don’t just give you a number. We run through our checklist so you can follow the process that lead to our evaluation.  We can also run through options for how to increase that evaluation by doing some maintenance and/or minor upgrades.

The most important point to remember when getting a property valuation is you that you need to be able to trust your agent.  However you might feel about the answer you are given when you ask ‘how much is my property worth’ you should be confident that you have been given a fair and honest valuation. For more information click here.

What an amazing few days!  While we all wait to find out who will be our next Prime Minister the events of recent days have highlighted the power and results that can be achieved through good negotiation.

Obviously the major political parties and the Independent MPs are negotiating for their own political future, the good of the nation and the people of their electorates. In real estate terms the negotiation is usually focussed on the single issue of price, but that doesn’t mean the process is any less intense or important for those involved.  The stakes can be high.

The key point to remember is that any negotiation involves both sides demonstrating a willingness to talk with the intention of trying to reach an outcome acceptable to both. When buying or selling a property that means knowing in advance how flexible you can be on your price but also giving consideration to other areas you can use to negotiate.  For example can you offer an extended settlement or a quick settlement? The size of the deposit on a property is another sensitive issue that can be offered as a point of negotiation as can the inclusion of furniture and fixtures.

Talk through all possible options with your real estate agent before the negotiation begins.  One common tactic in negotiating is not to place all your cards on the table upfront but it is important that you are open and honest with your agent so they can represent your interests with integrity during the process. The most important point when entering a negotiation is to be clear on your boundaries before you start.  Negotiations usually take place in a high pressure environment so you need to be confident enough in your decisions that you can hold firm as the pressure mounts.

Remember, most negotiations involve a compromise of some kind but with the right agent on your side and the right preparation you will be able to achieve the right outcome.

Next week……The dreaded question of real estate

As the winter mood lifts and the countdown to the start of the spring selling season gets under way you may find thoughts like that running through your head.  Is Spring really the right time to sell when it can mean more properties on the market and therefore more competition?

We think Spring is a great time to market a property that’s ready to sell. By that we are not referring to the mindset of the vendor – We talking about the state of the property itself. 

Yes I’m sure you’ve heard it before but it really does make a difference to the speed and price of a sale if the property is well presented.  Make your property stand out from the crowd by adding some sparkle.

Fresh, clean, uncluttered are the three key objectives you should be looking to achieve. See selling tips for more detail.

Clean needs little explanation but to really get your house to sparkle consider professionally cleaned windows, carpets, curtains and blinds.  Also keep in mind the old saying ‘out of sight out of mind’ doesn’t apply to open for inspections!  People will open your cupboards so you need to have them looking ordered and tidy.  Cluttered cupboards give the impression there is insufficient storage in the property.

An open house is an opportunity to present the property as a dream home for a potential buyer. Make it easy for buyers imagine themselves living that dream by limiting personal photographs and the ‘everyday’ bits and pieces and paperwork that are usually lying around a working home.  A clutter free kitchen bench might not be a practical reality but it is what most people would like to achieve!

‘Fresh’ is all about colours and fragrance.  No I don’t mean burning incense – it’s more subtle and yet more powerful to simply have some fresh flowers strategically placed in the home (don’t overdo it or you will make people suspicious you’re trying to hide something or worry that there has just been a death in the family!). 

It’s not rocket science but it does work so if you are considering selling this spring, now is the time to get to work. 

It’s no secret that real estate is influenced by the cycle of the seasons. In real estate when Spring hits the mood lifts, the signs go up and the expectation is that the hammer will go down. Sure, Spring can be a great time to sell – long days, warm temperatures and pretty gardens are enticing for buyers. Combine that with a timeframe that allows for buying, exchanging and moving in ‘before Christmas’ and the pressure builds.

But while we don’t want to put a dampener on the mood it’s important to remember that the weather is not the only ‘mood’ that can influence real estate demand and prices.  Spring won’t automatically change the mood of the uncertain economy. Interest rates on hold for August is positive but commentators remain divided over what to expect of the mood of the Reserve Bank when they meet again in September.

Also Spring will coincide with the crucial first 100 days of the new elected Federal Government.  Whichever party takes power the decisions taken in those first 100 days will impact the mood of the nation as we evaluate how their term in office is going to pan out. It all sounds a bit gloomy doesn’t it, and certainly not what you’d expect to hear from your local real estate agent in the lead up to the supposed Spring real estate bonanza.

Don’t get us wrong. Spring is the main selling season for real estate and we see potential to deliver some great returns for the listings we have scheduled for Spring.  The upshot is that it’s okay to think positive but it’s a vital element of our job to ensure sellors have realistic expectations and aren’t carried away by the Spring hype.  We prefer to set the right mood from the start to avoid a mood swing at the last minute.

Whilst we have seen a positive shift in the market in the first quarter of 2010 the market has cooled slightly over the past 2 months. There is some uncertainity in the market place due to overseas property markets, in particular the U.S and U.K, the volatile ASX and speculation over a federal election. We are confident however that Spring will see a flood of new buyers into the market place. In particular if the election is behind us. This should give buyers better direction and sure up buyer confidence.  We are also experinencing interest in premium apartments from the international community. In particular wealthy Chinese buyers.

Interesting market. It has cooled in the high end apartment market to almost freezing.  Buyers looking to purchase are looking for value if not a bargain.

Upto $1M is still very buoyant.  It seems that double income professionals are feeling that job security is back and they are getting back intothe market and buying.  All the action would see m to be at that level.

Comment from RPData – Rismark who produce the National Home Value Index Release

Australian housing market continues to cool in month of May

Australian capital cities have recorded their second consecutive month of single digit annualised growth. Capital city values were up 0.6 per cent in May while ‘Rest of State’ markets recorded a fall of -0.9 per cent.

The deceleration in capital growth rates first evidenced in RP Data-Rismark’s April index results has continued in May, with capital city home values rising just 0.6 per cent (0.5 per cent seasonally adjusted) and non-capital city values falling by -0.9 per cent (-0.2 per cent seasonally adjusted) over the month.

RP Data’s director of research Tim Lawless said RP Data-Rismark’s May index results reinforce mounting speculation that the Australian real estate market is transitioning towards a lower and more sustainable growth path, which will be encouraging for the RBA.

We thought now an opportune time to let you know about some legislative changes which could impact how you manage your property.

Morton & Morton, and no doubt many of you, believe there has been a long overdue need for reform to elements of the current Residential Tenant Act. With a history of bias in favour of tenants and with the 2009 Residential Tenancies Bill substantially shifting the balance of power further in favour of tenants, we are looking for a reform that will see an equal balance between tenants and owners.

After extensive lobbying, REINSW and Morton & Morton are pleased to announce that the NSW Government has listened to our collective concerns and suggestions regarding its draft Residential Tenancies Bill, and that they have been incorporated into the amended Bill as introduced into Parliament. The bill is currently subject to approval by the Upper House and we will ensure all our landlords are notified once the final form of the legislation is known.



What are the proposed key changes?*

Abandoning a proposal to give tenants the right to break a fixed-term tenancy agreement during the fixed term in return for payment of a ‘break fee

Scrapping the compulsory proposal to cap a landlord’s damages (including loss of rent) if a tenant abandoned rented premises, and maintaining the current obligation on a landlord to mitigate their loss in such circumstances

Providing greater certainty for landlords when terminating periodic tenancies

Further limiting the government’s proposals to allow tenants to make ‘minor’ changes to the landlord’s property (e.g. painting is not a ‘minor’ change) or to sub-let the property without the landlord’s consent (which are both proposals that REINSW still opposes in principle and will continue to lobby against).
*REINSW dated 8/6/10

We at Morton & Morton are interested to hear your views on the proposed changes.
REINSW, in conjunction with Morton & Morton and other interested parties, will continue to actively lobby on behalf of members.
 
To view the REINSW submission click here 
To view the proposed Bill click here 

The decision to hold interest rates steady today is a positive for the property market.  There has been a cooling of interest as buyers retreated to the sideline with a degree of caution based on recent reports of economic meltdown in Europe and potential interest rate rises. Obviously too early to call but we expect buyers to feel more confident in proceeding with purchases.  Just recently we have seen buyers making offers and then withdrawing or taking too long to finalise the deal.  The interest rate hold will create confidence.   The activity in the last three weeks has certainly been below the $1M mark.

It’s amazing what sentiment can do to a market.  There has been a definite cooling and there is more hesitancy from buyers.  We are seeing examples of buyers offering, then withdrawing and then offering again.  The share market volatility and the European situation is worrying buyers and despite reports of the Australian economy being ok, it creates concern and indecision amongst buyers.  Of course the Global Financial Crisis is still a fresh memory.  So for vendors, you really have to price carefully. If you are expecting a silly price, and use set your strategy with this in mind, then you will sit for awhile.

Feel free to email me ewan@mortonandmorton.com.au with comment. Until next time.

It is an interesting question, particularly when the Sydney Morning Herald had such sensational headlines in today’s paper.  Certainly the house market is performing very strongly.  There would appear to be a shortage of listings and increased demand – leading to strong price growth.

At Morton & Morton we are involved heavily in the apartment market.  Certainly for apartments up to $1M – strong competition and excellent prices.  I would say from $450,000 - $600,000 it is hot.  But the top end has not quite hit the same levels yet.  There are definitely buyers looking again (in comparison to this time last year) but they are being careful with their offers and looking for value.

The rental market is performing well.  In the 1st quarter, we saw vacancies rates plummet to levels we had not seen previously at the high end (1.2% in January).  It’s increased slightly now (2.4%) but still low. 

There has also been a lot of press lately on the impact of foreign buyers on the market.  Basically the rules had been softened to make it easier for foreigners to buy.  2009 saw increased interest in Pyrmont from mainland Chinese.  The rules have been tightened up again so it will be interesting to see if there is an affect on prices.  Stay tuned.

As a business owner, I am writing this with a mixture of relief as well as pride.  The real estate market has taken a hammering, particularly at the high end with the main effect being a substantial drop in transactions – very challenging.  But things are changing.  Our results for the past 3 months have, dare I say it, been consistent.  And dare I say even more, improving, to levels that are pre Financial Crisis.

Consumer sentiment is definitely on the up and buyers who have observed the market for the past 6 months are now acting.  Our strategy is now to do the very best by our vendors.  We have clients who have also been frustrated but they have continued to support us, something we really appreciate.   Some sale prices achieved in the past 3 weeks have been substantially up on expectations due to a strong belief in the price by our agents.

3 apartment sales this month have been over $2 million.  Finally, this market is starting to show signs of recovery.

In January this year, we realised it was going to be a tough year. Our focus has been on the core skills of our people.  Intense training in sales, negotiation and leadership has been our focus.  We are seeing this investment pay off for our clients with strong results.

The rental market has also improved.  We have been treading cautiously with vacancy creeping up particularly in the $1000+ per week bracket.  Our Asset Managers are talking about rent increases in this part of the market.  This is quite a turn around from my last newsletter. I am approaching this with caution but at the first available opportunity we will start pushing rents up.

Feel free to email me ewan@mortonandmorton.com.au with comment. Until next time.