Wednesday, April 19, 2006

Records Sales 2006 off to a flying start!

Last Saturday many would have read of Toop&Toop’s sale of The Myrtles in Medindie at 5.2 million. In the same article (on page 2 of the Advertiser) it made reference to the record sale price for Adelaide of 5.3 million being our sale of Springwood Park. We sold and settled Springwood Park in January of this year. These two sales now make up the highest and second highest prices for South Australia and what is significant is that both have occurred this year in 2006.So, the top end of the market in Adelaide has been very strong. Toop&Toop has never had so much action over the million dollar range and taking a look at the new properties we have listed in recent weeks, we haven’t seen the end of prestige property sales by a long way.

While for some this may appear as bad news since Adelaide’s reputation for affordable homes is ‘on the block”, the reality is that these high priced sales barely rate on the national scene and most particularly as against east coast cities. Adelaide would benefit greatly from a prestige point of view if our highest priced sale was more like 10 million, even Perth has numerous sales in that price range. From Toop&Toops point of view, we have a number of homes about to hit the market which will hopefully challenge the 5.3 million dollar bar and we will do our part in helping Adelaide prestige property remain relevant on a national level. Adelaide is not booming in all quarters. The mortgage belt areas have been hit quite hard in recent months with the combination of higher petrol prices, the end of our record property boom, and the prediction of higher interest rates. There is considerable confusion by both buyers and sellers since while the market hasn’t crashed but has lost momentum and prices are under downward pressure.

For those contemplating a sale, my strongest recommendation is simply to get on with it. As the top end records fall, some of our popular suburbs are recording price falls.... so where do you think this will all lead?

Anthony Toop, Managing Director

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