Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Mick Haggarty from First National David Haggarty expects the Maitland/Hunter Valley property market to further steady for the remainder of 2011, on the back of a moderating market over the first half of the year. “This will create an ideal market for investors, who could capitalise on lower house prices, increasing rents and improved yields,” Mr Haggarty said in the network’s Property Outlook 2011 Mid Year Update released this week. “Housing affordability, the threat of interest rates increasing, reducing consumer confidence and tight lending criteria from major banks will continue to impact the market in the coming six months.” In the main, property prices across all segments (house, apartment/strata and land) are expected to remain relatively flat, with any movements kept to between 1 and 5 per cent. Mr Haggarty believes the rental market is expected to soften slightly, with vacancy rates easing and trending upwards, increasing by between 5 and 10 per cent, while weekly rents will trend upwards with increases of as much as 20 per cent. “A shortage of available rental accommodation and ongoing strong demand will underpin any rent increases,” Mr Haggarty said. Investor activity is expected to slightly increase by between 1 and 5 per cent, representing the strongest growth in activity. “This growth is a result of increased second buyer activity, better rental yields and returns and easing of bank lending criteria,” Mr Haggarty said. The Government’s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values. Mr Haggarty considers Stamp Duty should be abolished altogether, as it would promote more efficient use of existing housing stocks.
“The mooted plans for replacing it with other taxes such as a broad-based land tax, including the family home, or death duties should not be carried through,” Mr Haggarty said. “ And any talk of abolishing negative gearing should cease immediately as it would encourage people to invest and build a nest egg for their future and therefore reduce reliance on welfare.” The exclusion of any of these proposed policy changes from the recently announced NSW state budget may be an indication that the Government does not intend to take such matters any further. “It is hoped that the change in NSW government will see some changes in planning policy to enable developers to release more land at a more affordable development cost and with reduced red tape,” Mr Haggarty said. “There is, however, a budget loss to be recovered and this may impact on the ability of the new government to effectively move forward with their plans.” - copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Mick Haggarty, First National David Haggarty on 02 4933 5544