Media release – Date BOX HILL PROPERTY MARKET SHOWING SIGNS OF RECOVERY Dennis Dellas from First National Real Estate Lindellas expects the 2012 Box Hill 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 Box Hill is set to rebound in 2012, as a result of interest rate cuts,” Mr Dellas said in the First National 2012 Property Market Outlook released this week. The key challenges for the 2012 property market are seen by Mr Dellas as buyer confidence and large developments. “Box Hill, the largest transport hub in Victoria outside the Melbourne CBD, will see some strong development in 2012,” Mr Dellas said. “The approval of a 7-level apartment complex and 10 level apartment complex and the application for several other multi-storey apartment buildings will see Box Hill concrete itself as the suburb to invest in development land earmarked for residential development for the future. “Currently, a 14 level commercial office complex on Whitehorse Rod in Box Hill is with council for approval which will instill great confidence within the commercial-office investment area and will reflect onto residential developments in pursuing greater height limits and greater yields. The residential property market should see house prices for Box Hill on a downward trend into 2012 as a result of buyer confidence in the market place. Decreases of up to 1 per cent are expected. Apartment/strata property prices, however, are on the rise, with up to 5 per cent increases expected following price decreases in 2011 making units very affordable. Interest rate cuts have seen unit prices increase and investors return to the market. The rental market is expected to see vacancy rates are expected to remain relatively flat given a short supply of rental properties and affordability of housing too high for first home buyers. Weekly rent prices will maintain their current steady trend. Mr Dellas said any increases in investor activity are expected to be in the vicinity of 5 per cent as a result of improved market conditions, namely interest rate cuts and reduced house prices. “Investor activity is expected to be the strongest growth segment, driven by affordability, along with improved yields and rental returns and confidence in the market place with the added benefit of the downturn in the share market,” Mr Dellas said. According to Mr Dellas interest rates are expected to decrease by up to 0.5 per cent which are expected to impact on buyer confidence, stimulating the market, especially investors.
The carbon tax is expected to have an impact on the property market, potentially producing higher home and rent prices, as well as reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Dennis Dellas, Principal from First National Real Estate Lindellas, on 03 9838 1388.