Media release – date CENTRAL COAST PROPERTY MARKET SET TO IMPROVE IN 2012 Mark Millington from First National Lakeshores expects the current trend of a steadying market for Lake Macquarie and Central Coast to continue into 2012, with the market improving as the year progresses. Mr Millington said in the First National 2012 Property Market Outlook released this week, the exit of first home buyers from the market, affordable rental accommodation and consumer confidence will be the key challenges to face the region’s property market for 2012, especially in the first half of the year. “The removal of stamp duty concessions for first home buyers will impact on the ability for this sector to enter the market, coupled with limited new sub-divisions being available which has traditionally been a source of affordable housing for first home buyers,” Mr Millington said. “Some of this first home buyer market retraction will be offset by investor activity which is already increasing.” In the Outlook, Mr Millington outlined some of the factors affecting the local property market, including the lack of focus for local, state and federal governments in regard to releasing land and reducing the cost of development on housing affordability. “Buyer confidence has improved in recent months and this trend should continue into 2012, with the biggest influences being interest rates and impacts of the local and global economies,” Mr Millington said. According to Mr Millington, property prices in the Lake Macquarie and Central Coast region are expected to remain relatively flat across all sectors of houses, apartment/strata and land. “Buyers in general are still house price sensitive and concerned about local and global economies. An undersupply of available housing will continue to underpin pricing to some degree, which could see potential increases of up to 5 per cent,” Mr Millington said. “Limited apartment/strata development in the region will see increases kept to below 1 per cent for this sector. “And a shortage of new land releases due to development costs and government red tape, coupled with established homes being more affordable than building new ones will keep land prices flat, with the potential for some increases of up to 1 per cent.” The rental market should see vacancy rates remain flat, already being at 1 per cent with little room for movement, and demand strong with no shortage of tenants looking for quality affordable rental accommodation.
“The strong demand, increased competition and tight rental market will keep upward pressure on weekly rent prices which are expected to increase by between 1 and 5 per cent,� Mr Millington said. Investor activity is expected to produce the strongest growth in the next six months, increasing by between 1 and 5 per cent, driven by improved affordability as a result of falling home prices and lower interest rates yielding better returns. Mr Millington believes interest rates will decrease by between 0.25 to 0.5 per cent which he expects will increase the ability for finance and improve affordability, hopefully giving consumer more confidence. The carbon tax is expected by Mr Millington to have an impact on the property market, producing higher home and rent prices and reducing consumer confidence. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Mark Millington, Principal from First National Lakeshores, on 02 4359 1555