North Adelaide - Media Release

Media release – Date NORTH ADELAIDE PROPERTY MARKET TO FURTHER MODERATE IN 2012 Andrew Porteous from First National Real Estate Redmans expects the North Adelaide property market to further moderate in 2012, following a steady market in the second half of 2011 due to economic factors such as global economies, interest rates and consumer confidence.

“A key challenge for the North Adelaide property market in the first half of 2012 will be affordability, with many struggling to secure the necessary finance,” Mr Porteous said in the First National 2012 Property Market Outlook released this week.

“The global economy will continue to effect consumer confidence which results in a conservative approach to investment being taken, and lower speculation.”

According to the Outlook, residential property prices in the North Adelaide region are expected to flatten or trend downwards in 2012 across all sectors of houses, land and apartment/strata properties.

“House prices could drop by between 5 to 10 per cent due to lower buyer demand and lack of pressure from investors and first home buyers, although improved yields could see movement in apartment/strata property prices in the region by up to 1 per cent,” Mr Porteous said.

The rental market should see vacancy rates in North Adelaide ease in 2012, trending upwards due to an over-supply in some suburbs – increases could be in the vicinity of 1 to 5 per cent, which may see weekly rent prices decrease by up to 5 per cent as more tenants are willing to negotiate on price.

Mr Porteous expects the retiree segment to produce the strongest growth in activity in 2012 as the older population demographic seeks to downsize.

Interest rates are expected to decrease by up to 0.5 per cent in the first six months of 2012, hopefully stimulating interest from investors.

“Consumers are expected to remain conservative, reluctant to make any big or life changing decisions, as ongoing uncertainty on European and American economies continue to impact buyer confidence,” Mr Porteous said.

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

For further information or to receive a copy of the 2011 Property Outlook, Andrew Porteous, Principal from First National Real Estate Redmans, on 08 8159 8500