19th December 2008
MARKET REPORT OCTOBER, NOVEMBER, DECEMBER, 2008
PROPERTY BETWEEN THE BEACH AND THE HIGHWAY AT MERMAID BEACH AND MIAMI
THE EXPERIENCED ‘BEACHSIDE’ SALES TEAM
Left to Right – Perry Brosnan, Robyn Montrec, Luke Henderson (Partner & Auctioneer) David Henderson (Principal), Andrew Henderson (Partner), Peter Lamb, Karen Dunne and Mark Deeley
Welcome to our new look quarterly newsletter. Following on from our previous report, market conditions remain rather sluggish, however there continues to be enquiry from both sellers and buyers which is keeping our team busy. The number of sales in this quarter have remained similar to that of the previous quarter, which again is about half of what they were for the same time last year. Our sales team continues to be very active in the marketplace and consistently achieve a number of sales through their hard work and experience, as in tougher markets the selection of an experienced Agent with the track record of “getting the job done”, is ever more so important to property sellers.
Prices overall have continued to soften, with some property down as much as twenty five percent less than they were at the peak of the market in late 2007. The lower priced market has been the most resilient with falls as low as 10 percent or less in some instances. The principal sales activity has been with the unit market. In all, those sales achieved in the residential “beachside” market have certainly faired better than the downturn in the share market.
We still have not seen any proliferation of mortgagee or “fire sales” however it is obvious that vendors must remain competitive in the market if they wish to sell or they must be prepared to sit on the market for an extended period of time.
We believe that there are large sums of money in astute investor’s pockets that is waiting for the bottom of the real estate market before it is destined to be spent on our prime positioned property. This has been evidenced by the consistent level of enquiry that the premium positioned properties still continue to receive from potential purchasers. When the market rebounds, it is anticipated it will rebound quickly and strongly.
In tough real estate markets, it is important that vendors seek out a sales consultant who is highly experienced in selling property in their local area. This is a unique industry where it normally costs no more to employ a successful agent than engaging someone not so experienced.
BEACHFRONT WITH LAND CONTENT
In previous hard markets on the Gold Coast such as is being experienced at present, it has always been the high price residential property which was the most difficult to sell even at reduced rates. The beachfront market has certainly seen some recent sales activity albeit like all areas in the market, at reduced levels from the peak prices achieved in 2007.
Land content is becoming scarce here and more Australians have the desire to purchase premium locations which will greatly assist the potential demand and growth for the very special and very best residential locations. As people have said for many years now – “they are not making any more beachfront!”
HOUSES AND FLATS WITH LAND CONTENT
Pricing has continued to remain competitive with the volume of sales slowing from that of this time last year. The sale of an older brick two storey home on a western corner of Hedges Avenue for $2,000,000 was the most notable during this quarter. You will still see considerable building activity up and down the side streets as the older fibros make way for the new upmarket houses. This activity appears not to have slackened off in line with the general real estate market as existing projects near completion.
Our agency still continues to be the market leader with the dominant number of “beachside” sales. In tougher markets, sellers need to ensure that they have the most experienced “beachside” sales consultants working for them, as choosing a not so experienced agent could be detrimental to the potential sale price you achieve.
This agency has been the major financial sponsor for over ten years to the three lifesaving clubs, in our area, Mermaid Beach, Nobby Beach and Miami Beach.
HOME UNITS
Prices have remained approximately ten percent below where they were a year ago. Units in the lower price ranges are experiencing the majority of the enquiry and sales activity. This demand has seen this sector of the market the most insulated from price falls. These vendors have been realistic with their listed prices for these lower priced units, giving each vendor more opportunity to achieve a sale. The recent incentives to the first-home buyers scheme has certainly also added to the desirability of this sector of the market.
Sales include an absolute beachfront renovated two bedroom ensuite unit in “2 Lavarack” for $1,100,000; two bedroom, two bathroom unit in “Splendido Apartments”, Gold Coast Highway for $420,000; “Seagull Sands” Seagull Avenue for $405,000; “Montana Surf” Montana Road for $345,000; “Miami Beachside” Santa Monica Road for $300,000; & “Grande Florida” Redondo Avenue for $275,000. Two bedroom, one bathroom sales include “Miami Beach Apartments”, Marine Parade for $390,000; “Mermaid Villa” William Street for $382,000; “Marbeau” Ocean Street for $357,000; & “Tamarama” Peerless Avenue for $337,500.
PERMANENT RENTALS
Our current vacancy rate is approximately 3% which is a slight increase on the vacancy rate experienced three months ago with prices remaining similar to where they were three months ago.
The demand is excellent for two bedroom units with two bathrooms in all price ranges as well as for free-standing houses priced at less than $400 per week. The enquiry for property priced at above the $500 per week level is proving a little more difficult to rent, which no doubt is a result of the effect of the current economic situation.
Our own agency rent roll continues to show excellent growth in the number of properties which we manage and it is evident that investors are no longer interested in renting their own properties themselves and are showing a preference to act through an experienced and trusted agent. Our Group has continually conducted extensive on-going staff training so as to ensure that our rental personnel are able to offer our owners the best level of service.
We have noticed a considerable change in the manner in which tenants are seeking new property to rent. In past years the local press or our office location were the primary sources of enquiry. Now our research shows that as high as 80% of tenants are seeking their new home through the internet. Our agency has ensured that we have the most advanced techniques to keep abreast with this change, with all of our vacancies placed on the internet in a prominent manner and updated each weekday. We are continually told by the public that our internet site is second to none and to verify this you can inspect our rentals by logging on to www.prohenderson.com.au and then click on “renting”. Our potential tenants have access to four internet sites – our own site www.prohenderson.com.au, the Professionals Group site www.professionals.com.au, www.domain.com.au, and the largest real estate site in Australia www.realestate.com.au as well as these sites extensive links.
We are continually seeking new permanent rental properties for management and are very serious about this section of our business whereby we are currently caring for over $300 million worth of residential property. We have seven experienced rental personnel who are here to assist our clients, all of whom are well trained to protect your important investment. Furthermore you have the comfort of knowing that there is the backing and financial support of a highly successful family business which has been located at Mermaid Beach for thirty-five years. Should you be dissatisfied with your current agent or unhappy with the situation of the management of your property being transferred from one agent to another agent when agency rent rolls are sold – then contact our Property Managers for care and stability.
BUYING, SELLING OR RENTING
Should you be interested in buying or selling we invite you to contact our consultants. We are a major selling agency and proudly for the past seven years were placed either in second or third position of the Professionals Group in the whole of Queensland. In fact, we sell more properties in this area than any other agent and have done so for over twenty years. Our Sales Consultants reside locally and have an average of six years employment with this Agency. For the past five years three different consultants from our office have achieved the leading sales consultants in the Professionals Group in the whole of Queensland.
This is a family business which was established thirty-five years ago at Mermaid Beach. We are a successful company that believes in putting something back into the community and takes pride in being the major long term financial sponsors for the three local surf lifesaving clubs, Mermaid Beach, Nobby Beach and Miami Beach. During the past decade, we have donated over $200,000 to those Clubs to enable the purchase of valuable lifesaving equipment. These funds have enabled the clubs to purchase such equipment as a tractor, three beach vehicles, a patrol tower, equipment trailers for both on the beach and on road, refurbishment and partially equipping a first-aid room, plus other items such as tents, surf skis, rescue boards, nipper boards, patrol clothing etc.
This support is on-going and we maintain long term contracts with local Surf Live Saving Clubs, providing annual substantial cash donations which will assist these clubs in planning for the future.
RACING UPDATE
On a lighter note, the Gold Coast’s richest two year old race, the Magic Millions, is scheduled for Saturday January 10th at the Gold Coast Turf Club and the Henderson family are part owners of the Gai Waterhouse trained “Horizons” and at this stage are hopeful that this filly will take her place in the field and perform very well.
SEASON’S GREETINGS
On behalf of everyone at John Henderson Professionals Real Estate, Mermaid Beach, we would like to take this opportunity to sincerely thank everyone for their continued support over the past year and wish everyone the very best for 2009.
MERRY CHRISTMAS & HAPPY INVESTING IN THE NEW YEAR!
| Sales Personnel |
Administration | Property Management |
| Peter Lamb |
John Henderson (Consultant) |
Karyn Land |
| Robyn Montrec |
Dale Edwards (Sales) |
Crystle Dries |
| Andrew Henderson (Partner) | Lauren McMahon (Sales) | Linnell Hellyer |
| Luke Henderson (Auctioneer & Partner) |
Sharon Howarth (Office) | Pauline James |
| Karen Dunne | Kelly Mullen | |
| Mark Deeley | Amy Pollard | |
| Perry Brosnan | Jan Henderson | |
| David Henderson (Principal) |