Wednesday, July 07, 2010

Tax Lotto... try House Lotto

The top end market in Adelaide has been alive and well over the past 6 weeks. Everyone seems to be asking what we mean when we say ‘Top End’ – well we’re referring to the over $1million price range.

Due to the proliferation of TOP END sales recently, we feel it is time to adopt another special category. So for the sake of discussion let’s split the TOP END into TOP END ($1 to $5million) and S.A ICONIC HOMES ($5million plus) categories. On our weekly Toop.TV segment we collectively call these two categories S.A’s Finest. Interestingly, there is still no pure residential home to have broken the $5.5 million ceiling in South Australia, and those that have been reported have either had additional development potential or other non-residential financial benefits.

This week’s headline of “Record breaker Ivanhoe back on the market for $7million” was interesting, and if a sale at this price were to be achieved Ivanhoe would be a S.A. ICONIC HOME sale as it is a single dwelling. The timing should tap into the current frustration of buyers who are searching for those rare S.A ICONIC HOMES. The article also states "Ivanhoe joins Cygnet Court waterfront home, with two marina berths, at Glenelg, which is on the market for $7.75 million" then goes on to cover the $6.5 million sale of Stormont in Glenelg.

So is South Australia finally moving toward achieving that first magical $10 million sale? Or are owners of S.A. ICONIC HOMES on the verge of winning HOUSE LOTTO? It really is like a lottery at the moment, but the stakes are high. The dilemma for buyers is that they have too few properties to choose from at the moment in this S.A. Iconic Homes category. Selling S.A ICONIC HOMES is completely different from standard real estate dynamics. Valuers and banks are often hesitant to support record breaking sales yet buyers in this market are financially independent. Conservative, professional advisors often become the real estate agents challenge rather than the actual buyer. This is where Adelaide’s unique networks come into play, while overseas markets are able to be accessed like never before utilising technology and the latest of online capabilities.

For sellers, once the property goes public the clock is ticking and getting a result, without lengthy delays avoids market fatigue, this can have serious consequences. Given such a small community, these super high profile properties become the focus of dinner party discussions within the Adelaide establishment and networks, which works positively in the first instance. However a long protracted sale invariably can end up with unhappy buyers & sellers.

As with all lotteries, you have to be in it to win it.

On the mainstream market, our TPI for June is 4.65 where 5 is normal conditions. June was a very strong month for sales and especially Top End. Be absolutely certain to watch Wednesdays Toop.TV as we had a fantastic, insightful look into what is happening right now with guest Anthony Keane, Your Money Editor and writer for Australian publication, My MONEY. To watch it just log onto www.toop.tv.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

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