Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Ian Savins from Savins First National Real Estate expects the Casino property market to further steady for the remainder of 2011, on the back of a moderating market over the first half of the year due to ongoing nervousness around interest rates. “This will create an ideal market for investors, who could capitalise on lower house prices, increasing rents and improved yields,” Mr Savins said in the network’s Property Outlook 2011 Mid Year Update released this week. “However, housing affordability, reducing consumer confidence and tight lending criteria from major banks will continue to impact the market in the coming six months.” “In the main, property prices across all segments (house, apartment/strata and land) are expected to remain relatively flat, with any movements kept to a maximum of up to 5 per cent. “Enquiry levels for the Casino region indicate the market has softened and should remain so until at least the end of 2011.” Mr Savins believes the rental market is expected to remain strong, weekly rents trending upwards and increasing by between 5 and 10 per cent, while vacancy rates will remain flat. “A shortage of available rental accommodation and ongoing strong demand will underpin any rent increases,” Mr Savins said. “Investor activity is expected to increase by between 5 and 10 per cent, driven by increasing weekly returns,” Mr Savins said. “However, it is the Upgrader market that is expected to represent the strongest growth in activity for the region.” The Government’s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values.
“Although, this could be an each-way bet, but until the tax is introduced and the impacts felt, it is difficult to predict the outcome on property transactions,” Mr Savins said. Mr Savins considers Stamp Duty should be abolished altogether, as it would deliver on the promise of eliminating indirect taxes such as these when the GST was introduced. “The mooted plans for replacing it with other taxes such as a broad-based land tax, including the family home, or death duties should not be carried through and any talk of abolishing negative gearing should cease immediately,” Mr Savins said. “Existing infrastructure is sagging under the pressure of the current population and upgrades are required.” The exclusion of any of these proposed policy changes from the recently announced NSW state budget may be an indication that the Government does not intend to take such matters any further. “It is hoped that the change in NSW government will see some changes in planning policy to enable developers to release more land at a more affordable development cost and with reduced red tape,” Mr Savins said. “There is, however, a budget loss to be recovered and this may impact on the ability of the new government to effectively move forward with their plans.” - copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Ian Savins, Savins First National Real Estate on 02 6662 4888