Media release – date GLOUCESTER PROPERTY MARKET SET TO IMPROVE IN 2012 Ms Kim Wiesner from First National Real Estate Gloucester expects the current trend of a steadying market for the region to continue into 2012, with the market improving as the year progresses due to mining activity in the region. Ms Wiesner said in the First National 2012 Property Market Outlook released this week, the key challenges facing the Gloucester property market in 2012 will be uncertainty about what is happening with the mining sector, in particular Coal Seam Gas. “The rural property market, especially, is being affected by coal seam gas projects,” Ms Wiesner said. “The uncertainty of knowing what is happening is making the buyer market uncertain as well. Some are concerned and want employment while others are concerned about the quality of life and impact of the mines.” According to Ms Wiesner’s Outlook, the high percentage of investor properties and rentals in the region make the Gloucester property market susceptible to interest rate fluctuations, making this the most significant factor affecting the local property market. “Large properties are difficult to sell in the Gloucester market as there is not a lot of spare cash around and people are unable to capitalize on the tax advantages of properties they used to be able to leverage,” Ms Wiesner explained. “This has seen them look to smaller lifestyle hobby properties as a tax break.” Approval for a Woolworths in the town is a sign of promise and progress and recent residential releases should cater for future growth. Currently, smaller blocks under 5 acres close to town are the most popular and as they sell out, attention will turn to the other options available. Ms Wiesner said property prices in the Gloucester region are expected to remain relatively flat across all sectors of houses, apartment/strata and land due to uncertainty in local market and economic conditions, particularly around the mining sector. Vacancy rates are expected to tighten, trending downwards with decreases of between 10 and 20 per cent as a result of mining in the region and more people seeking a ‘tree change’ coming into the region. The ongoing strong demand will keep upward pressure on weekly rent prices which are expected to increase by between 1 and 5 per cent. According to the Outook, investor activity is expected to produce the strongest growth in the next six months, increasing by between 1 and 5 per cent, driven by the mining and resources boom.
Ms Wiesner expects interest rates to decrease which is expected to increase demand as a result of improved affordability and strengthening consumer confidence. “The economic events in Europe and America are expected to continue impacting on buyer confidence which should increase activity in the investment market, especially if interest rates continue to decline so that investment properties offer better returns than the share market,� Ms Wiesner said. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Kim Wiesner, Principal from First National Real Estate Gloucester, on 02 6558 9077