Media release – date CROWS NEST PROPERTY MARKET SET TO IMPROVE IN 2012 Greg Lambert from First National Real Estate Total Realty expects the current trend of a steadying market for Crows Nest to continue into 2012, with the market improving as the year progresses due to a shortage of properties and lower interest rates. Mr Lambert said in the First National 2012 Property Market Outlook released this week, the key challenges facing the Crows Nest property market in 2012 will be the availability of quality properties for sale and lease. Interest rates and loan affordability will be the significant factors facing the Crows Nest property market in 2012. “Lower interest rates always strengthen the market, as they make for greater affordability,” Mr Lambert said. “Overall, the marketplace is staying quite strong for the coming year, with interest rates remaining low, loan affordability being constant, a general shortage of property for sale and lease, but both purchasers and tenants wanting to reside in the region, hence demand will remain very strong in all sectors. “The Crows Nest region requires some major projects to help kick it along and the local Councils are well aware of this. They are looking to make substantial changes to their planning policies and possibly allow bigger and better developments, especially where sites suit the end usage. “This will bring more new development and encourage both young and old patrons to think about moving into the area, where there will be a more vibrant atmosphere, with more activity and lots more entertainment venues, including cafes, restaurants, theatres and the like, further adding to the region’s appeal. “ Mr Lambert said all of these things will take time to implement, but any start will be a positive one for the region According to the Outlook, residential property prices in the Crows Nest region are expected to remain relatively flat across all sectors of houses, apartment/strata and land with strong demand and shortage of supply offsetting consumer nervousness. Any price increases are expected to be in the vicinity of between 1 and 5 per cent. The rental market should see vacancy rates tighten, trending downwards as a result of a shortage of supply of rental properties in the face of strong demand. Ongoing strong demand and limited supply will keep upward pressure on weekly rent prices which are expected to increase by between 5 and 10 per cent.
Mr Lambert expects Upgraders to produce the strongest growth in activity for the Crows Nest region in the coming six months. “People are looking to change their place of abode, including empty nesters looking to downsize and be closer to the city,” Mr Lambert said. “Investor activity is also expected to show growth increasing by between 10 and 20 per cent as a result of a poor-performing share market and higher returns being experienced in the property market.” Interest rates are expected to decrease by up to 0.5 per cent which is expected to strengthen the market bringing more confidence to purchasers to sell and buy in the same marketplace. The economic events in Europe and America are expected to continue impacting on buyer confidence. The introduction of the carbon tax is expected to also affect the property market, further reducing consumer confidence and generating higher home prices. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Greg Lambert, Principal from First National Real Estate Total Realty, on 02 9906 5377