Clearly, the holiday season provides time and clear space to al low contemplation on life´s big decisions. Last January, for instance, we had some of the year´s greatest numbers of

buyers coming through our opens. Given growing confidence and buying power this year, we expect this effect will be even more pronounced.

Break? What break?! Gone are the days where one year in real estate fades to a close, and property markets shut down until February. Properties sell on Christmas Eve and streams of email enquiries come in via beachside tablets throughout late December and well into January. In this newsletter, our summer edition, we will arm you with all the latest information on our local conditions. Especially important since the market not only runs right up to the line as is the trend these days but will also ramp up earlier in 2013.

For many years now, summer seasonality has become less pronounced. It is not unusual in this modern era to see strong auction numbers even the week before Christmas. However, 2012 seems to have had an especially late run. Perhaps part of an ongoing trend, but we also suspect that many owners have been compelled to sell

MOSMAN

9 Warringah Road

Contact Kingsley Yates

0411 875 017

Lower North Shore RWLNS.com info@RWLNS.com 9953 7333

Peter Matthews - Managing Director

Property Market UpdateLower North Shore

given strong clearance rates and an appreciation for the growing confidence of buyers - especially in the sub 1.5 Million bracket. For well-priced properties, buyers are numerous and decisive. Notwithstanding, volumes at the top end also show signs of ongoing strengthening. This agency has sold numerous $3 Million plus properties this spring and summer

To illustrate further, across the Lower North Shore for December 2012, 154 properties will be auctioned compared to 116 for December 2011 - a one third increase this year according to APM. We don´t have to spell-out what the combination of larger auction volumes at higher clearance rates says about our market.

The trend toward strengthening buyer demand is apparent right across Sydney. For instance on the measure of Vendor

discounting, properties across Sydney are selling at only 6.1% less (on average) than their initial asking price. This compared with 7.6% discounting July 2011.

The other important measure of demand is days spent on market. This is also improving markedly. Currently, it takes less than 80 days on average to move properties in Sydney whereas this figure at the start of 2012 was 95 days. Consequently, Sydney is the state capital with fastest moving property market in the nation. Given that financial markets are pricing-in a better than even chance of further rate cuts in the first quarter of 2013, property market momentum is likely to persist.

No wonder savvy vendors and buyers alike are taking advantage of the favourable spring/summer conditions.

National News

Summer 2012/2013

Online listings are nothing new, however the accessibility via smart phones and tablets means that real estate websites incur substantial seasonal traffic. Seemingly, the market never sleeps nor goes on holiday. Inevitably, buyers will make resolutions over the break, and purchase property in the New Year.

If you are contemplating a New Year sales campaign, it is vitally important to have the conversation early with your Sales Consultant or Property Manager. We know that those vendors, who are organised and ready to go, are rewarded by stronger

Director's Desk

February auction results. After all, buyers come back armed with research and brimming with enthusiasm. An opportunity not to be missed.

In 2013 the rental market will continue to steadily ease, becoming less restrictive for tenants. A natural consequence of stronger sales markets. According to SQM Research the Sydney rental market has already eased slightly over the year, expanding to 1.6% today compared to 1.3% same time last year.

Whilst we acknowledge that a sub 2% vacancy rate is still historically tight, we strongly encourage landlords to take the opportunity this summer to ensure that when and if their property needs to be re-let, that it is presented such to achieve the highest price in the least amount of time spent vacant. Especially true in the more competitive summer months.

We feel assured however, that in the long run, property investment is a wise strategy. We know that local construction is lack lustre and that the number of households that rent continues to grow- more than a third of Sydney households are now renting.

Property Management News Leasing SummarySeptember - November 2012

The quarter has continued to be very busy for leasing at Ray White Lower North Shore.

• 152 properties leased

• rental range $270 - $4700pw

• rents reviewed for this period - 262

• increases in rent for this period - 102

• average vacancy rate 1.1%

Ray White Lower North Shore's Portfolio Managers and Leasing Consultants work hard to maximise our landlord's returns on their investments.

Interest Rates & Banks

The Reserve Bank of Australia (RBA) cut interest rates by 0.25%, making the cash rate 3% - the lowest level since the GFC. One of Australia's banks has decided to pass on the full rate cut, one hour after the announcement by the RBA. ING will pass on the full 0.25% rate cut effective Monday 24/12/12. We now await other lenders to announce what they will pass on in the coming weeks.

The major lenders are still competing for market share, offering spring campaigns for a limited time with $1000 rebates for new purchases and $700 rebates for clients refinancing from other institutions. Some lenders are even promising to undercut their competitors advertised rate by 0.01% pa to secure new business. Others are offering between 0.85% and 1% discounts off their standard variable rates for loans between $250k and $1m - conditions apply! The banks are also offering (at all-time lows) very attractive 2 year fixed rates of 5.29%, 3 year fixed rates of 5.39%, and 5 year fixed rates. These are all well below their standard variable rates. Please contact Denise Sisavanh-Chan our Loan Market Expert for any queries relating to purchase or refinance.

Sydney Rental Market

National News

For Sale - Feature Sale Properties

NORTH SYDNEY

4/32 Hipwood Street

Offers over $500,000

2 bed

1 bath

Contact Max Wagschall

0401 859 103

NAREMBURN

14/34-38 Station Street

Auction Over $590,000

2 bed

2 bath

1 car

Contact Alon Beran

0433 233 910

KIRRIBILLI

Penthouse, 49 Upper Pitt Street

POA

3 bed

2 bath

4 car

Contact Dino Gatti

0410 568 146

MOSMAN

61 Parriwi Road

POA

4 bed

2 bath

2 car

Contact Shane Slater

0414 312 013

ST LEONARDS

212/34 Oxley Street

Sold for $632,500

2 bed

2 bath

1 car

Contact Sean St Clair & Alon Beran

0410 506 661 / 0433 233 910

WOLLSTONECRAFT

11/1-5 Ivy Street

Sold for $685,000

2 bed

2 bath

1 car

Contact Robert Holmes

0400 323 828

NORTH SYDNEY

8 Doris Street

Sold for $846,000

2 bed

1 bath

Contact James Kuziow & Mary Curran

0433 333 027 / 0411 178 181

NEUTRAL BAY

301/433 Alfred Street

Sold for $940,000

3 bed

2 bath

2 car

Contact Adrian Rae

0407 245 337

MCMAHONS POINT

24 Chuter Street

Sold for $1,000,000

3 bed

1 bath

Contact Helen Noble & Shane Slater

0422 222 557 / 0414 312 013

WILLOUGHBY

5 First Avenue

Sold for $1,650,000

4 bed

1 bath

2 car

Contact Danny Grant

0404 821 155

CREMORNE

7/45 Grasmere Road

Sold for $1,815,000

3 bed

2 bath

2 car

Contact Sharon Cooper

0415 976 169

BALMORAL

31 Burran Avenue

Sold for $3,500,000

3 bed

2 bath

Contact Kingsley Yates & Rachael Wright

0411 875 017 / 0404 070 201

Sold Properties - Thinking of Selling?

Lower North Shore RWLNS.com info@RWLNS.com 9953 7333