Marrickville - Media Release

Media release – date MARRICKVILLE PROPERTY MARKET SET TO MODERATE IN 2012 Tony Iskandar from First National Real Estate Marrickville expects the Marrickville property market to moderate in the coming six months, with potential for the market to decline as the year progresses depending on what happens with interest rates.

“A 1 per cent decrease, which is expected in the first half of 2012, should steady the residential property market, especially if consumer confidence improves,” Mr Iskandar said in the First National 2012 Property Market Outlook released this week.

According to the Outlook, residential property prices are expected to remain relatively flat, across all property sectors, of houses, apartment/strata and land, with movements of between 1 and 5 per cent.

The rental market should see vacancy rates to tighten, decreasing by up to 5 per cent with weekly rent prices expected to remain relatively flat.

Mr Iskandar expects investor activity to increase by between 5 and 10 per cent in the next 6 months as a result of falling property prices producing stronger yields.

“But I expect Upgraders to represent the strongest growth in activity sector as improved affordability makes it an ideal time to purchase bigger and better,” Mr Iskandar said.

Interest rates are expected to decrease by up to 1 per cent, which should improve market conditions and bolster consumer confidence, steadying the market by the middle of the year.

The economic events in Europe and America are expected to impact on consumer confidence, and the introduction of the carbon tax is expected to produce higher rents.

- copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Tony Iskandar, Principal from First National Real Estate Marrickville, on 02 9569 3699