Media release – date MISSION BEACH PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Di Wagner from First National Real Estate Mission Beach says the local property market is showing some potential for 2012, with signs that a slow recovery is just around the corner if consumer confidence returns and governments become proactive and push through some much needed developments and infrastructure projects. “In the last six months, the market has been falling, and as 2012 this is expected to continue until the European and global economy improves and buyer confidence strengthens,” Ms Wagner said in the First National 2012 Property Market Outlook released this week. The key challenge facing the region’s property market in 2012 is seen by Ms Wagner as an excess of supply, and ongoing climatic concerns as a result of the recent cyclone Yasi which came hot on the heels of the 2006 cyclone Larry. “These events have remained ‘top of mind’ for people contemplating a move to this region. Some property owners have made the decision to move to safer ground and those considering a move to the area have now had second thoughts,” Ms Wagner said. “However, the oversupply of properties may force some home sellers to withdraw their property from sale until the economy improves, which will assist in reducing the quantity of properties on the market and this reduced supply will eventually lead to an increase in prices. “Traditionally, Mission Beach has had a history of 70 per cent investors and 30 per cent locals buying in the area. Now, we have a decrease in sales numbers and a 30 per cent investor market and a 70 per cent local market. It is the absence of investors in the Mission Beach market that has been most noticeable.” According to Ms Wagner, any planned developments in the Mission Beach area would have a positive impact on increased activity in sales in the area, but unfortunately, the lack of confidence in the world economy has impacted the region and the planned proposed developments have been put on hold. “The government also changed the zoning of the area that was earmarked as a new marina development, thus making the possibility of a marina now more distant than ever before,” Ms Wagner said. The Outlook says residential property prices in Mission Beach are expected to trend downwards in 2012 across all sectors of houses, apartment/strata and land due to ongoing buyer cautiousness, global economies, an excess of supply and reduced demand. Downward movements of between 10 and 20 per cent are expected.
“The rental market outlook is a bit more positive with cyclone Yasi increasing demand for tradespeople in the area resulting in increased demand on rental accommodation,” Ms Wagner said. Vacancy rates are expected to trend downwards in 2012, decreasing by between 1 and 5 per cent, while weekly rents will trend upwards with shortages pushing up rents by between 1 and 5 per cent. Ms Wagner expects investors to represent the strongest growth in activity in the Mission Beach region due to the recent cyclone Yasi making it possible for some property owners to upgrade their homes as a result of total loss of property. “The local market will continue to be the most prevalent in the market place,” Ms Wagner said. Interest rates are expected to further decrease in the first half of 2012 as the government needs to address lower interest rates in order to tempt buyers back into the market by endeavouring to build a renewed confidence. “The Airlie Beach Foreshore and new infrastructure projects, coupled with strong job prospects will serve to attract more miners and their partners to live in the area,” Ms Wagner said. The introduction of the carbon tax is expected to affect the local property market, further reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Di Wagner, Principal from First National Real Estate Mission Beach, on 07 4088 6033.