Media release – Date DRYSDALE PROPERTY MARKET SHOWING SIGNS OF RECOVERY Ron Pearson from First National Real Estate Gateway expects the 2012 Drysdale 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 Drysdale is set to rebound in 2012, due to the natural cycle of property,” Mr Pearson said in the First National 2012 Property Market Outlook released this week. The key challenge for the 2012 property market is seen by Mr Pearson as overcoming an abundance of new house and land packages, with large developments significantly impacting on the local property market in the coming six months. “New house and land packages are flooding the Drysdale market at affordable prices, at the expense of the established homes market,” Mr Pearson said. “Over time, however, the region’s profile will lift as a result of this increased activity which will ultimately lift activity across all market segments.” According to the Outlook, residential property prices in Drysdale are expected to remain flat in general, given the region’s current low profile. “Any house and apartment/strata property price movements will be kept to below 1 per cent, while a plethora of choice will keep land price increases at bay,” Mr Pearson said. The rental market should see vacancy rates trend downwards, decreasing by between 1 and 5 per cent, being already at low rates there is not much room for movement. “Weekly rents will trend upwards with demand pushing rents up by between 1 and 5 per cent. Drysdale already offers affordable rental accommodation compared to other areas, so there is room for some increases,” Mr Pearson said. Mr Pearson expects investors to be the strongest growth segment, with increases in activity expected to be in the vicinity of 10 to 20 per cent as a result of strong demand and affordable purchase prices. Interest rates are expected to remain unchanged in the first half of 2012 which help build consumer confidence and stimulate market activity. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Ron Pearson, Principal from First National Real Estate Gateway, on 03 5251 2222.