Media release – date GUNGAHLIN PROPERTY MARKET SET TO IMPROVE IN 2012 Paul O’Donnell from First National Real Estate Gungahlin expects the current falling market for the Gungahlin region to moderate into 2012, with the market improving as the year progresses, due to gradually improving consumer confidence in the local market as a result of recent interest rate drops and expected property value increases. Mr O’Donnell said in the First National 2012 Property Market Outlook released this week, the key challenge facing the Gungahlin and Canberra property market in 2012 is the global economy and its impact on consumer confidence. “The speedy rate of development and ongoing investment by the ACT government on infrastructure in the Gungahlin area will be the most significant factors impacting on the region’s property market into 2012,” Mr O’Donnell said. “The ACT government continues to invest heavily in the Gungahlin region with construction having commenced on the new Health Centre, and the work on the new Leisure Centre due to begin in mid 2012. “Local community groups continue to lobby for a cinema complex and a hospital. “The population of the region is currently 43,000 and this is projected to rise to 60,000 by 2016.” Just prior to Christmas, Mr O’Donnel said, the ACT government called for expressions of interest to build a new office building which will house a relocated government department to the Gungahlin region, providing an additional 500 jobs for the region. The Gungahlin college opened this year, catering for 900 students in years 11 and 12. New road projects have also been announced, including the Majura Parkway which will provide better access to the city and southern suburbs for Gungahlin residents. According to the Outlook residential house prices in the Gungahlin region are expected to trend upwards, increasing by up to 1 per cent, tempered by the global economic conditions. “The ACT has a high rate of employment, relatively high wages and disposable income compared to the rest of the country and there is still a housing shortage in the nation’s capital,” Mr O’Donnell sad. “Apartment/strata property prices are expected to be flat, with a large amount of units currently under construction in the ACT. Price movements for the sector will be below 1 per cent. “Land prices will trend downwards, decreasing by up to 1 per cent with the ACT government due to release 20,000 blocks in various new developments throughout the state over the next 4 years.”
Mr O’Donnell expects the rental market to see vacancy rates trend upwards, easing with increases of up to 1 per cent however the ACT will continue to have a shortage of rental accommodation. “The ongoing shortage of supply will maintain upwards pressure on rents, which are expected to increase by up to 5 per cent in the coming six months,” Mr O’Donnell said. According to Mr O’Donnell, investor activity will represent the strongest growth sector, with growth expectations of up to 5 per cent as a result of the ACT ongoing outperformance of other states in capital growth as well as rental yields. Mr O’Donnell expects interest rates to decrease by up to 0.75 per cent, which should improve market confidence. “The economic events in Europe and America will also impact on buyer confidence and the introduction of the carbon tax is expected to generate higher home prices,” Mr O’Donnell said. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Paul O’Donnell, Principal from First National Real Estate Gungahlin, on 02 6262 2525