Gawler - Media Release

Media release – Date GAWLER PROPERTY MARKET TO FURTHER MODERATE IN 2012 Robert Stell from First National Real Estate People’s Choice expects the Gawler property market to further moderate in 2012, following a steady market in the second half of 2011 due to global economic conditions, interest rates and consumer confidence.

“An influx of planned development activity is expected to bring more activity to the Gawler region, however global economies and reticence by banks to provide finance may dampen some activity,” Mr Stell said in the First National 2012 Property Market Outlook released this week.

“Reduced job security may also see the property market experience some increase in default mortgages in the Gawler region.

“The key challenges for the Gawler property market will be higher living costs, impacts of global economies and banks’ lending criteria.”

According to the Outlook, residential property prices in Gawler are expected to remain flat in 2012 across all sectors of houses, land and apartment/strata properties, with the potential for some movements of up to 1 per cent.

The rental market should see vacancy rates in Gawler flatten in 2012, with movements of between 1 and 5 per cent, while weekly rents are expected to remain unchanged.

Mr Stell expects any increases in investor activity to be around 5 per cent driven by lower interest rates creating improved returns.

“However, it is the upgrader segment which I expect to produce the strongest growth in activity in 2012,” Mr Stell said.

Interest rates are expected to decrease by up to 0.25 per cent in the first six months of 2012, which may prove enticing for investors to return to the market.

The introduction of the carbon tax is expected to impact the property market, reducing consumer confidence.

- Copy ends – Issued by: First National Real Estate.

For further information or to receive a copy of the 2011 Property Outlook, Robert Stell, Principal from First National Real Estate People’s Choice, on 08 8523 4111