Media release – Date FRANKSTON PROPERTY MARKET SHOWING SIGNS OF RECOVERY Shane Dawes from First National Real Estate Dawes & Milne expects the 2012 Frankston 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 Frankston is set to rebound in 2012, as a result of interest rate cuts and relative affordability,” Mr Dawes said in the First National 2012 Property Market Outlook released this week. The key challenge for the 2012 property market is seen by Mr Dawes as building consumer confidence which has taken a downturn as a result of federal government policy changes. Significant factors affecting the local property market in the coming six months are the introduction of the carbon tax and overseas events, both of which have the potential to further erode consumer confidence. “The carbon tax will drive up unemployment and inflation and see more manufacturing go offshore,” Mr Dawes said. “A change of federal government and the abolition of the carbon tax will go a long way to restoring consumer confidence.” According to the Outlook, residential property prices in Frankston are expected to trend downwards in general. House prices will decrease by between 1 and 5 per cent, an oversupply of stock will see apartment/strata property prices decrease by between 5 and 10 per cent while land scarcity will see land prices remain flat. The rental market should see vacancy rates and weekly rental prices remain flat in 2012, following recent rises. “There is the potential they may fall by up to 5 per cent, as the market corrects itself,” Mr Dawes said. Mr Dawes expects investors to be the strongest growth segment, with increases in investor activity expected to be in the vicinity of 1 to 5 per cent as a result of real estate offering better turns than shares, especially with the current low property prices. Interest rates are expected to decrease by up to 0.5 per cent, which is expected to improve consumer confidence and make property even more attractive for investors. The economic events in Europe and America are impacting on buyer confidence as they impact to some extent on local economies.
The carbon tax is expected to have an impact on the property market, further reducing consumer confidence and producing higher home prices. -
Copy ends –
Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Shane Dawes, Principal from First National Real Estate Dawes & Milne, on 03 9781 6666.