Soon household names like LJ Hooker, Ray White, Raine and Horne & Century 21 could be brands of yesteryear.
It is hard to think that companies like “Google” were started in September 1998 – less than 10 years ago. Their initial public offering was in August 2004 – less than 4 years ago. Google is currently ranked number 289 in the Forbes 2000 List. This means that Google is now the 289th largest company in the world with a share price of $US472.86 and market capitalization of over $US200 billion.
Google has done all of this without a shop front, without an office in every suburb, without an advertisement in the Wentworth Courier, Mosman Daily, Newcastle Herald or any other real estate related newspaper in Australia. Yet they are the largest internet search engine in the world and are growing by the day. In the last 12 months Google have grown so much that their company ranking in Forbes Magazine had increased by around 200 spots.
Also have a think about E Bay – have you seen an E Bay store in your suburb? The answer is no and yet this business is now one of the most recognized and fastest growing in the world.
The importance of the shop front has gone. The internet is the new shop front. So where does this leave the local franchised real estate agent? The reality is that the local shop front is under such financial pressure that they are on the brink of extinction – the local shop front is dying. Buyers rarely search in every shop window in every possible suburb they are looking in to find a new home – they search on the internet. They search by suburb name and by price – they are able to define their search criteria online better than ever.
With total spending on real estate advertising in newspapers tipped to decrease by around 18 % annually for the next three years according to the National Association of Realtors the world is evolving rapidly. We are moving to a point where remnants of the past are discarded quicker than many companies can keep up with.
The new shop front is the internet and the new real estate agent franchise is one that can innovate, minimize costs, provide exceptional customer service, reward and incentivise their people like never before and take the lead with a completely new business model.
Real estate agency’s are not keeping up with change, stubbornly sticking to business practices that most other industries have left behind.
Thus, who will “do a Google” by transforming real estate? Whoever it is, it surely is not far off. Watch this space!
Michael Marquette michael@marquetteturner.com.au
Thursday, February 28, 2008
Sydney Prestige Property Sales Dive.
Sales of Sydney prestige homes, properties worth more than A$2 million ($1.8 million), slowed more than 35 percent this year, the Australian Financial Review reported.
There have been 190 such properties sold since the start of 2008, compared with 295 in the year-earlier period.
We are, however, expecting the market to pick up as people become more tolerant of, or held hostage to changing market conditions.
Michael Marquette michael@marquetteturner.com.au
There have been 190 such properties sold since the start of 2008, compared with 295 in the year-earlier period.
We are, however, expecting the market to pick up as people become more tolerant of, or held hostage to changing market conditions.
Michael Marquette michael@marquetteturner.com.au
Disney Land, Sydney?!
THE Walt Disney Company has been looking at a prime piece of real estate on Sydney Harbour as it seeks to expand its global empire of theme parks and resorts.
The NSW State Government has confirmed that Disney recently held unsolicited discussions with the Department of State and Regional Development about the redevelopment of White Bay, a working port next to the Anzac Bridge.
Disney, which has 11 theme parks, eight resorts and a cruise line across three continents, was one of a number of unnamed companies that have approached the NSW State Government with unsolicited proposals for the site, the spokesman said.
There are no "active" concepts at present.
A spokesman for Walt Disney Parks and Resorts, John Nicoletti, said his company was constantly exploring opportunities to grow. "As part of that process, we have conversations with lots of entities," he said. "And, while Australia is an attractive market, at this time we have no plans for this region."
He would not comment on what Disney had envisioned for the White Bay site, including whether it was for a Disneyland theme park, a Disney resort or some other venture.
The Government has established the Bays Precinct Taskforce to formulate a development strategy for White Bay, Glebe Island, Blackwattle Bay and Rozelle Bay.
Details are expected to be released when the sub-regional strategy for Sydney's inner west goes on display this year.
The executive director of the Sydney Chamber of Commerce, Patricia Forsythe, said a Disneyland at White Bay would be a wonderful opportunity for Sydney. "It is a spectacular site worthy of an iconic development," she said.
She said a world-class arts facility would also be suitable.
The NSW State Government has confirmed that Disney recently held unsolicited discussions with the Department of State and Regional Development about the redevelopment of White Bay, a working port next to the Anzac Bridge.
Disney, which has 11 theme parks, eight resorts and a cruise line across three continents, was one of a number of unnamed companies that have approached the NSW State Government with unsolicited proposals for the site, the spokesman said.
There are no "active" concepts at present.
A spokesman for Walt Disney Parks and Resorts, John Nicoletti, said his company was constantly exploring opportunities to grow. "As part of that process, we have conversations with lots of entities," he said. "And, while Australia is an attractive market, at this time we have no plans for this region."
He would not comment on what Disney had envisioned for the White Bay site, including whether it was for a Disneyland theme park, a Disney resort or some other venture.
The Government has established the Bays Precinct Taskforce to formulate a development strategy for White Bay, Glebe Island, Blackwattle Bay and Rozelle Bay.
Details are expected to be released when the sub-regional strategy for Sydney's inner west goes on display this year.
The executive director of the Sydney Chamber of Commerce, Patricia Forsythe, said a Disneyland at White Bay would be a wonderful opportunity for Sydney. "It is a spectacular site worthy of an iconic development," she said.
She said a world-class arts facility would also be suitable.
Can Cars Destroy Real Estate Values?
Despite the recent pullout of Mitsubishi from Australia, we are not talking here about the demise of the Australian car industry
Ever been to Zermatt, Switzerland? No cars are allowed in the whole town. There are some electric carts and horse carriages. It is absolutely relaxing walking about town with no polluting cars to disturb the tranquility.
Fast forward to Sydney or Melbourne's freeways into the cities. Every morning cars are backed up for km's and even worse at the entrance to the cities. It is not uncommon to take 30 minutes for that dreaded last "k" into town. Once there parking is the next nightmare.
Often a pedestrianised mall is one of the few no-go places for traffic. Water fountains are common, whilst people can sit and relax in cafés and socialise, or just people watch.
It is so blatantly obvious that car free areas thrive and yet it seems that man enslaves him selves to serving the servant of mobility. Wherever piece and quite rules, real estate prospers and people enjoy themselves. A combination that is hard to beat.
Alternative transportation methods, such as a credible train/metro system would allow people to reclaim our towns and make them ours again.
We live in hope!
Simon Turner simon@marquetteturner.com.au
Ever been to Zermatt, Switzerland? No cars are allowed in the whole town. There are some electric carts and horse carriages. It is absolutely relaxing walking about town with no polluting cars to disturb the tranquility.
Fast forward to Sydney or Melbourne's freeways into the cities. Every morning cars are backed up for km's and even worse at the entrance to the cities. It is not uncommon to take 30 minutes for that dreaded last "k" into town. Once there parking is the next nightmare.
Often a pedestrianised mall is one of the few no-go places for traffic. Water fountains are common, whilst people can sit and relax in cafés and socialise, or just people watch.
It is so blatantly obvious that car free areas thrive and yet it seems that man enslaves him selves to serving the servant of mobility. Wherever piece and quite rules, real estate prospers and people enjoy themselves. A combination that is hard to beat.
Alternative transportation methods, such as a credible train/metro system would allow people to reclaim our towns and make them ours again.
We live in hope!
Simon Turner simon@marquetteturner.com.au
Aspen Real Estate Prices are "Nothing Special"
Aspen Ski Resort in the US sounds expensive just thinking about it. It might look cheap or expensive compared to the budget you have for buying real estate and secondly it might look cheap or expensive compared to other luxury real estate in other US ski resorts.
The first price distinction is a personal matter; it just depends on your budget. If your budget is $US100,000 to buy a vacation apartment, then Aspen will definitely look expensive to you.
But if your budget is $US2 million for a two-bedroom condo and you are comparing it to other luxury resort towns you will find that Aspen prices are not outlandish anymore. Back in the heydays of Aspen becoming a hip place its prices always bordered on the insane. It used to really take a leap of faith to buy.
That is what changed. Aspen apartments in the central core of town range from about $US1,400 to $US1,800 per square foot depending on level of finish, age and location. International real estate prices like London and Dublin have far outpaced Aspen and tourists often go bargain hunting for real estate in Aspen.
As Aspen is fast becoming an international destination resort the weak US Dollar is turning real estate prices into bargain basement levels for a large swath of wealthy individuals. The British Pound is hovering around 2:1 to the Dollar and the Euro is at an all time high nearing 1.50:1 to the Dollar.
Aspen, with its 5,000 single-family homes and 5,000 apartments between them are on an even keel with standard Manhattan Real Estate and we are not talking the Fifth Avenue places that demand prices of up to $6,000 per square foot. Just that fact should ensure that real estate in this little town will do well in the future as Aspen is a special place at currently an “un-special”price.
Posted by Toby Munk on 02/23/2008 at 06:23 PM
Aspen Real Estate
The first price distinction is a personal matter; it just depends on your budget. If your budget is $US100,000 to buy a vacation apartment, then Aspen will definitely look expensive to you.
But if your budget is $US2 million for a two-bedroom condo and you are comparing it to other luxury resort towns you will find that Aspen prices are not outlandish anymore. Back in the heydays of Aspen becoming a hip place its prices always bordered on the insane. It used to really take a leap of faith to buy.
That is what changed. Aspen apartments in the central core of town range from about $US1,400 to $US1,800 per square foot depending on level of finish, age and location. International real estate prices like London and Dublin have far outpaced Aspen and tourists often go bargain hunting for real estate in Aspen.
As Aspen is fast becoming an international destination resort the weak US Dollar is turning real estate prices into bargain basement levels for a large swath of wealthy individuals. The British Pound is hovering around 2:1 to the Dollar and the Euro is at an all time high nearing 1.50:1 to the Dollar.
Aspen, with its 5,000 single-family homes and 5,000 apartments between them are on an even keel with standard Manhattan Real Estate and we are not talking the Fifth Avenue places that demand prices of up to $6,000 per square foot. Just that fact should ensure that real estate in this little town will do well in the future as Aspen is a special place at currently an “un-special”price.
Posted by Toby Munk on 02/23/2008 at 06:23 PM
Aspen Real Estate
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