Assessment 3 Internal Pages – Max Lionel Realty
Quarterly Residential Sales Report
The little company with the big roar!
Max Lionel Realty
Suite 2, 196 Randall St
Preston VIC 3072
Phone: (03) 6954 3000
Fax: (03) 6954 3001
January 11, 2011 – Leading residential agency, Max Lionel Realty Estate Agents, have posted a record sales quarter in their 22 years of business. The group sold $1.605 billion in residential sales for the 2010 October to December quarter from 1,691 sales. This reflects an increase of 16% on the corresponding 2009 October to December quarter of $1.388 billion from 1,313 properties. The sales for the group were diverse in price segments with 1,198 sales under $1M; 458 sales in the $1M to $3M bracket; and 37 sales above $3M. Average days on market were 38. Chief Executive Max Max Lionel Realty said, “We saw a steady increase in confidence leading up to the Christmas break for many of Sydney’s blue ribbon regions. There was a definite light starting to shine at the end of the tunnel as a number of astute top-end buyers re-entered the market in anticipation of an improving 2011 residential market. “In particular areas like Hunters Hill and the Upper North Shore that had been greatly affected by the GFC, saw opportunistic buyers coming in at the current price levels. I think the smartest buyers have realised the economy is back on track and if they can buy quality property at 20-30% pre-GFC prices they have a window of opportunity that won’t be open for much longer. “I believe the same can be said for the Northern Beaches in so far as smart buyers are starting to circle and look for bargains before the market improves. I am confident we will see 7% to 10% prices increases in 2011 for many of Sydney’s top end suburbs and homes as the economy moves up a gear. Areas like Hunters Hill, Pymble, Palm Beach and many more, were clearly oversold during the fear of the last two years and when the money comes back in, it will flow quickly.” Record growth across the Max Lionel Realty network for the Oct – Dec 2010 quarter were in the Sydney regional offices of Hunters Hill, Pymble, St. George, Castle Hill, Parramatta and Sylvania. – Max Lionel Realty Hunters Hill sold $101.8 million from 81 sales, compared to $60.8 million in 2009 quarter (+67%). – Max Lionel Realty Pymble sold $64.5 million from 59 sales, compared to $42.4 million in 2009 quarter (+52%) – Max Lionel Realty St. George sold $51.2 million from 56 sales, compared to $24.7 million in 2009 quarter (+108%) – Max Lionel Realty Castle Hill sold $45.7 million from 50 sales, compared to $24.1 million in 2009 quarter (+90%) – Max Lionel Realty Parramatta sold $33.4 million from 60 sales, compared to $21.7 million in 2009 quarter (+54%) – Max Lionel Realty Sylvania sold $26.7 million from 30 sales, compared to $13.3 million in 2009 quarter (+101%) In releasing his company’s sales figures, Mr. Max Lionel said “Whilst clearance rates pre-Xmas were slightly down on the previous few months that was more due to the increased volume of listings than weaker buyer activity. Whilst only around 50% was selling by auction most of our listings were sold soon after and we only have 10% of our December listings still available this month.”......
Residential Property Index falls as house price expectations pared back and rents weaken. Sentiment softer in all states (and still deeply negative in WA). Almost 10% of all property is being purchased by first home buyers as an “investment”. Foreign buyers less active all states except Victoria (1 in 3 of all new property sales). Over half of all transactions by foreigners are apartments, one-third houses and the balance re-development. Around 70% of all foreign purchases are for properties valued at less than $1 million; 5% in excess of $5 million.
The MAX LIONEL REALTY Residential Property Index fell -7 points to +12 points in Q4, and is now below its long term average of +14 points, with sentiment lower in all states.
MAX LIONEL REALTY Group residential sales manager Peter Williams said “NSW overtook Queensland as the strongest state in Q4, but Queensland and Victoria were the most optimistic looking forward, with WA the least optimistic by some margin.”
The outlook for house prices over the next 1-2 years was pared back in all states, while mildly stronger expectations for rental growth in Victoria and Queensland masked softer outlooks in NSW and SA/NT.
Foreign buyers in new property markets were less active in all states, except Victoria.
“Foreign buyers accounted for 14.8% of total demand for new property in Q4, down from 16.8% in Q3. In Victoria, however, they accounted for a new high of 32.5% of total demand, or 1 in 3 all new property sales” said Mr Williams.
New survey questions show that around 53% of all foreign purchases were for apartments, 31% for houses and 16% for houses or land for re-development. There were however some significant differences between states.
According to Mr Williams: “Apartments made up just 44% of all purchases in Victoria, compared to between 54-57% in the other states, with foreign buyers purchasing more houses in Victoria (38%) than any other state.”
Around 40% of foreign purchases were for properties valued between $500,000 to less than $1 million, and 29% for properties valued less than $500,000. Around 5% of all sales were for premium…...
You've reached the end of your free preview.
Want to read all pages?