Media release – Date CAMBERWELL AND GLEN IRIS PROPERTY MARKET SHOWING SIGNS OF RECOVERY Bryan Cain from First National Real Estate J.A. Cain expects the 2012 Camberwell and Glen Iris 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 Camberwell/Glen Iris is set to continue in 2012, due to reduced buyer confidence,” Mr Cain said in the First National 2012 Property Market Outlook released this week. “The key challenge for the market in 2012 will be bringing vendor price expectations in line with those of buyers,” Mr Cain said. “The current market is a buyer’s market so competition is fierce and they are setting the terms at the moment.” The most significant factors impacting the property market into 2012 are keeping interest rates low and uncertainty over global economies, such as those in Europe and America, as they direct affect buyer confidence and sales prices. According to the Outlook, residential property prices in Camberwell/Glen Iris are expected to continue trending downwards, with decreases of between 5 and 10 per cent as the market levels out. The rental market should see vacancy rates remain flat with potential movements of up to 1 per cent due to a steady supply and demand, which should see weekly rent prices also remain static. Mr Cain expects investor activity to be the strongest growth segment, with increases in the vicinity of 5 to 10 per cent as a result of strong demand and affordable purchase prices due to low interest rates. Interest rates are expected to decrease by up to 0.5 per cent in the first half of 2012, which should see the market slowly improve as the year progresses. The introduction of the carbon tax is expected to affect the property market as well, further eroding 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, Bryan Cain, Principal from First National Real Estate J.A. Cain, on 03 9805 2900.