Media release – date INNISFAIL PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Ian Lewis from Innisfail First National says the local property market is showing lots of potential for 2012, with signs already that a slow recovery is underway. “In the last six months, the market has been falling, but this is expected to swing around as 2012 begins as a result of the market bottoming out and investors return to the market as they capitalise on the improved market conditions,” Mr Lewis said in the First National 2012 Property Market Outlook released this week. The key challenges facing the region’s property market in 2012 is seen by Mr Lewis as strengthening consumer confidence and luring buyers back into the market to take advantage of reducing interest rates and improved affordability. “The purchase price to rental ratio is currently excellent and it is hoped renters will realise the gap between the rent and a mortgage is reducing to such an extent that they may be able to afford to purchase,” Mr Lewis said. According to the Outlook, residential property prices in Innisfail are expected to rise in 2012 across all sectors of houses, apartment/strata and land with movements kept to between 1 and 5 per cent. “The market bottoming leaves only one way for prices to go and that is upwards and it is expected investors will lead the way in 2012,” Mr Lewis said. The rental market should see vacancy rates are expected to trend downwards in 2012, tightening by between 1 and 5 per cent while weekly rent prices are expected to trend upwards, increasing by between of 1 and 5 per cent due to ongoing strong demand. Mr Lewis expects investors to represent the strongest growth in activity in the Innisfail region increasing by between 10 and 20 per cent as they take advantage of low purchase prices and excellent returns. Interest rates are expected to increase by around 0.5 per cent, which will serve to dampen the property market and slow it down. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Ian Lewis, Principal from Innisfail First National, on 07 4030 2600.