Ian Jackson, sales director of JP Dixon, is a man we can relate to: single malts, fly-fishing and a Brighton lover. Geez, I can’t believe I just wrote this – we’ve lost half our audience already. Seriously, Ian is a man I have enjoyed doing deals with. He does stick to his word and he will help with some honesty rather than hinder with some trickery to get difficult deals over the line. Of course, if you are a buyer, it is not all plain sailing and there are traps for the inexperienced and you will, at times, find any JP Dixon sales person’s quote challenging, but they have a renewed vigor and are a real force at the Brighton Top End. If you are serious buyer, then, more often than not, you will be considering a JP Dixon property and probably one Ian Jackson has his hand in.

Mal: Welcome Ian. What’s been happening at the Big End of Brighton – the Golden Mile?

Ian: Thank you Mal.

• Prior to Xmas, the majority of Top End Brighton was being bought by overseas buyers, mainly Chinese people. This year, in 2009, it is a very different story and, while there are still overseas enquiries, there is zero –  or very close to zero – transactions happening involving overseas clients.
• However, the market is stronger in terms of bidders but still less in terms of price than most of 2008.
• Properties are changing hands and they are being bought in the main by locals trading up. In other words, the local market, or many in the local market, feel we have reached some sort of bottom and their confidence is such that they are now putting pen to paper and deals are being done.

Examples are North Road, Leslie Grove, The Esplanade, Mytton Grove, Foote St and so on. All five of these are around $4 million-plus and Ian felt he could rattle off 15 Brighton sales in excess of $2 million this year.

Mal: Tell us about buyers and sellers in 2009.

Ian: Buyers:

• Right now there is a genuine feeling that this may be as low as it is going to go.
• Buyers are nothing like they were in 2007. They are doing their research and working out what they think a home is worth and then putting in an offer. They are also moving on, if that offer is not acceptable or very close to acceptable.

Sellers: Need to meet the market or they don’t sell, no matter how good they are.

There are still a few good homes on offer that have not been sold, despite a significant increase in buyer confidence. Golden Mile examples are 9 Dudley St Brighton and 15 Kent Avenue Brighton, great locations but have been around for a long time. Tell us a bit more about Absolute Beach Front Golden Mile.

• There are a shortage of absolute beachfront properties and there are buyers waiting.
• Some vendors are trying to get $1000 per sq ft and, to date, they are struggling to achieve that.
• Don’t get me wrong, Mal, if there is a place where the downturn has had little effect, it’s beachfront Golden Mile.
• I think $800 per sq ft is more the mark.
• Beachfront Buyers will pay the 2006-07 record prices; they just won’t exceed those prices in a hurry.
• Beachfront Golden Mile is rock solid. Other parts of the Golden Mile have seen values drop around 20%, unless it is one of genuine rareness (is that a word) and I think even the one we sold at auction that you featured in your news achieved less than it would have in 2007.

You mean 15 North Road?

Yes.

OK, the market has dropped at this elite level. Are you seeing many distressed sellers?

This stuff about a tsunami of forced sales about to land is the biggest load of garbage I have heard this past year. There is absolutely no indication of that.

In fact, to the contrary, the reason we have an acute shortage of stock is because people have decided not to sell unless they have to.

It may happen – these forced sales – but I have seen no indication of it en masse in Top End Brighton.

Outside the Golden Mile, what are the areas you like and what is happening over, say, $2.5 million?

• I think, Mal, you call it the Diamond Kilometre, bounded by Normanby, Beach, Were and New St, with great streets like Albert, Sussex and Manor.
• At the peak, Sussex St was selling at $330 per sq ft and Carole from Hodges just sold 24 Sussex for around $300 per sq ft, if you say the house was worth $150,000.
• Directly opposite that, Kay and Burton sold a single level home well in excess of $4 million this year.
• A lot of Brighton did struggle last year, especially in the $1 to 2 million range and that was because there was just too much stock but a lot of that is no longer on the market. Some has been withdrawn, yes, but a lot has sold after vendor adjustments.
• The Golden Triangle of Brighton Beach/Hampton is another area I like – particularly the streets like Gordon; and, finally
• Foote St/Drake St at North Brighton. As with The Golden Triangle, this area attracts people looking for larger blocks and, in the case of Foote St and Drake St, it is particularly appealing to families moving from Middle Park who want to be near the city, have more space, get their children to the good schools easily and still maintain some of that Elwood feel.

Investing for the longer term, not just what’s happening right now.

I have a bias because I live in the Diamond Kilometre but areas like Sussex St have seen even greater growth than the Golden Mile in the longer term. It was undervalued, until people worked out it had the same land size and similar beach access (granted you need to cross a road) as the Golden Mile but it was also a lot closer to Church St shops and cinema and restaurants and the train. In other words, you didn’t need to get your car out every time you wanted to go out.

However, anywhere in Brighton has been great long-term investing and you, of course, know that Mal. Shops, nearer the water the better, good floorplan and light.

Much rather put my money in Brighton than, say, outer Melbourne.

In a nutshell now.

Last year, buyers were around but not putting pen to paper; this year they are doing that, but at their levels and the successful ones are almost invariably local buyers trading up.

Mal: Thank you.

Ian: My pleasure.

Apartments: Ian has answered some questions on Golden Mile Apartments and they are contained in the Apartment section. If you are thinking of selling and found what Ian has to say makes sense, why not give Ian a ring on 0419 593 663 or drop into JP Dixon near the railway line on Bay Street Brighton.