Media release – Date KELMSCOTT PROPERTY MARKET STEADIES FOR 2012 Greg Devereaux from First National Real Estate Kelmscott expects the region’s property market to continue to moderate and perform steadily, following a moderating market in the latter half of 2011. “The significant factors affecting the local property market in the coming six months are lower interest rates and improved buyer confidence, which are expected to generate increased sales volumes,” Mr Devereaux said in the First National 2012 Property Market Outlook released this week. “However, it will only be the best priced and best present properties that will attract offers from discerning buyers, so sellers need to ensure they are diligent and pay particular attention to the details when preparing their properties for sale. “Planned development and infrastructure projects will see employment opportunities in the Kelmscott region grow and increase the need for developing new housing estates. Better transport to the city and airport and improved amenities will add further appeal to Kelmscott for home buyers and investors.” According to the Outlook, residential property prices for all sectors, houses, apartment/strata and land in the Kelmscott region are expected to remain flat as an oversupply of stock, overpriced properties or lack of buyer interest continues to apply downward pressure on prices. “In some areas, prices may even trend downwards, decreasing by between 1 and 5 per cent,” Mr Devereaux said. The rental market should see vacancy rates in Kelmscott trend downwards in 2012, tightening by between 5 and 10 per cent due to a short supply and growing demand with more people moving into the area. “This tight, competitive rental market will place pressure on weekly rents which are expected to trend upwards and increase by between 10 and 20 per cent,” Mr Devereaux said. Mr Devereaux expects investors will become more active in the market, compared to 12 months ago, and their activity is expected to increase by between 1 and 5 per cent as they strive to capitalise on current market conditions and improved affordability. “However, it is Upgraders I expect to represent the strongest growth in activity, driven by stable prices making it more attractive to move to bigger homes,” Mr Devereaux said. “A good supply of land in nearby Byford and Harrisdale may stimulate some activity by first home buyers.”
Interest rates are expected to decrease by around 0.25 per cent which should add to the improving market conditions and further stimulate activity. The Kelmscott commercial property market will continue to perform well in 2012, with 2011 representing the most active in for a decade. “Over the past year, commercial property prices rose by between 10-15 per cent, as this sector was seen as a better investment by many,” Mr Devereaux said. “Decreasing interest rates are expected to improve confidence in the commercial property market in 2012, but more needs to be done to encourage retail spending by consumers.” The carbon tax for commercial ventures is seen as a good place to start, but the real difference will be made by the individuals and not by companies. -
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Issued by: First National Real Estate For further information or to receive a copy of the 2011 Property Outlook, Greg Devereaux, Principal from First National Real Estate Kelmscott, on 08 9495 1212.