Media release – date CULBURRA PROPERTY MARKET SET TO IMPROVE IN 2012 Brian Muller from First National Real Estate Culburra expects the currently moderating Culburra market to rise in the coming six months, with signs of improvement over recent months through increased sales numbers and enquiries especially in the lower end of the market up to $350,000. “The market in the lower end has been quite strong recently and it appears to have become that way since the carbon tax was passed, along with the United States sorting out their financial position,” Mr Muller said in the First National 2012 Property Market Outlook released this week. “Planned developments will factor significantly in the 2012 property market with a large 800 block subdivision earmarked for release over the coming 10 year period on the outskirts of the Culburra village. “This will help improve permanent population and in turn generate growth for the local business community.” According to Mr Muller a development application is currently with Shoalhaven City Council for a large Golf Course development on the town fringe and if approved would significantly increase both sales and rental activity in the region. “Interest rates will all also be a contributing factor for 2012 property, with potential future increases proving too lucrative a drawcard for astute investors who will be lured by the rising rent returns experience over the last two years,” Mr Muller said. The key challenge for the Culburra region in 2012 will be the impact of global economies on buyer confidence. Residential property prices in the lower end of the market are expected trend upwards in the main, with the top end remaining relatively flat especially for apartment/strata properties which are not as popular as their free-standing counterparts. “House prices in the lower end are expected to increase by between 1 and 5 per cent, with limited supply of available vacant land set to push up land prices of between 1 and 5 per cent due to strong demand,” Mr Muller said. The rental market will continue to perform strongly with vacancy rates increasing by between 1 and 5 per cent given the shortage of supply for available rental properties and no indications more will come onto the market in the near future. “This tight market will see weekly rent prices increase by between 1 and per cent as well,” Mr Muller said.
Mr Muller expects investor activity to produce the strongest growth in the Culburra region, increasing by between 1 and per cent as a result of lower interest rates and yielding better returns. Interest rates are expected to decrease by up to 0.75 per cent which should improve market conditions and bolster consumer confidence. The economic events in Europe and America are expected to continue impacting on buyer confidence, causing them to hesitate when there is instability. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Brian Muller, Principal from First National Real Estate Culburra, on 02 4447 3600