Media release – Date BERWICK PROPERTY MARKET SHOWING SIGNS OF RECOVERY Ross Neilson from First National Real Estate Neilson Partners expects the 2012 Berwick property market to be quite subdued and says while there are encouraging signs, there is still some distance to go. “The current falling market in Melbourne’s south east corridor is set to rebound in 2012, as a result of interest rate cuts and relative affordability,” Mr Neilson said in the First National 2012 Property Market Outlook released this week. “In the main, buyers are less concerned about gloom and doom predictions. They realise our market rarely dips sharply and that prices are essentially holding. “Interest rates are also favourable, creating ideal market conditions for buyers.” The key challenge for the 2012 property market is seen by Mr Neilson as building consumer confidence. “A significant factor affecting the local property market in the coming six months is new estates to the south in Clyde and Cranbourne which create a food chain as new residents enter the area,” Mr Neilson said. “Berwick, being the heart of Melbourne’s outer south eastern growth corridor is set to continuing benefiting from ongoing development of these types of new estates.” According to the Outlook, residential property prices in Berwick are expected to remain flat in 2012. “There is good reason to believe prices will hold, but not that they will ultimately rise so close to levelling out,” Mr Neilson said. “Any increases will be kept to below one per cent across all sectors of land, houses and apartment/strata properties.” The rental market should see vacancy rates ease in 2012, trending upwards and increasing by up to 5 per cent, with more rental properties becoming available due to sale properties not selling and owners resorting to renting them out instead. Weekly rents should remain steady. Mr Neilson expects any increases in investor activity to be in the vicinity of 1 to 5 per cent as a result of increases in self manager super funds and investors being wary of shares as a form of investment.
“But it is Upgraders who I expect to be the strongest growth segment, given optimal market conditions of low interest rates and affordable home prices making now the time to search for that bigger and better home,� Mr Neilson said. Interest rates are expected to decrease by up to 0.25 per cent, which is expected to improve consumer confidence to some degree. The economic events in Europe and America are impacting on buyer confidence as they impact to some extent on local economies. The carbon tax is expected to have an impact on the property market, further reducing consumer confidence and producing higher home prices. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Ross Neilson, Principal from First National Real Estate Neilson Partners, on 03 9707 6000.