Mt Gambier - Media Release

Media release – Date MT GAMGIER PROPERTY MARKET TO FURTHER MODERATE IN 2012 Brian Spring from First National Real Estate Keatley expects the Mt Gambier property market to further moderate in 2012, following a steady market in the second half of 2011 due to toughened economic conditions, interest rates and consumer confidence.

“Large developments planned for the Mt Gambier region will see increased job opportunities, which may result in rent increases for many,” Mr Spring said in the First National 2012 Property Market Outlook released this week.

According to the Outlook, residential property prices in Mt Gambier are expected to flatten in 2012 across all sectors of houses, land and apartment/strata properties.

“There is potential for some movement of up to 1 per cent due to returning consumer confidence following the November drop in interest rates, however any growth, may be stymied by ongoing global economic concerns,” Mr Spring said.

“While planned local developments will increase interest in the local Mt Gambier region, the potential sale of State Assets, such as State Forests, may counter any gains made.”

The rental market should see vacancy rates in Mt Gambier tighten in 2012, trending downwards with increases of up to 1 per cent, while weekly rents are expected to trend upwards, with increases of between 1 and 5 per cent.

Mr Spring expects investors to produce the strongest growth in activity in 2012 for the Mt Gambier property market, with activity increasing by up to 5 per cent as investors capitalise on higher rent prices.

Interest rates are expected to remain relatively unchanged, which may prove a positive move for the property market.

The introduction of the carbon tax is expected to generate higher rents.

According to Mr Spring, the outook for the rural property market in the Mt Gambier region for the first half of 2012 is to maintain the current trend of a steadying market.

“The key issues facing the region’s rural property market is the introduction of the carbon tax and commodity prices, and their resulting impact on consumer confidence,” Mr Spring said.

- Copy ends – Issued by: First National Real Estate.

For further information or to receive a copy of the 2011 Property Outlook, Brian Spring, Principal from First National Real Estate Keatley, on 08 8724 8966