Media release – date NOWRA PROPERTY MARKET SET TO IMPROVE IN 2012 Anthony Rizzuto from First National Real Estate Nowra expects the current trend of a steadying market for the Nowra region is set to continue into 2012, with the market improving as the year progresses, due to an uncertain economy and job security. Mr Rizutto said in the First National 2012 Property Market Outlook released this week, the key challenge facing the Nowra property market in 2012 is the global economy and its impact on consumer confidence. “Interest rates and an ongoing flat market are the two most significant factors impacting on the Nowra property market into 2012,” Mr Rizutto said. According to the Outlook, residential property prices in the Nowra region are expected to remain relatively flat with movements kept to below 1 per cent. “There is potential for apartment/strata property prices to experience some increase of up to 5 per cent as a result of strong demand and limited supply placing upward pressure on prices,” Mr Rizutto said. The rental market should see vacancy rates remain flat, along with weekly rents as consumers continue to portray low confidence levels as a result of economic uncertainty and nervousness on job security. Mr Rizutto believes investor activity to show some growth increasing by up to 1 per cent due to limited demand. “But, it is the retiree segment that is expected to show the strongest growth, seeking a lifestyle change from metropolitan areas,” he said. Interest rates are expected to decrease by up to 0.5 per cent, which should help maintain some level of confidence and activity in the property market. The commercial property market in Nowra is expected to remain relatively stable in 2012 as a result of decreasing interest rates helping to stabilise the market from its recent downward trend. The carbon tax is seen as a good place to start to bring commercial properties in line with green credentials, but the real difference will be made by the individuals, not the companies. “Between 1 and 5 per cent of our clients seek energy efficient features when looking to lease or purchase a commercial property in the Nowra region, with solar power proving the most popular and making commercial properties more rentable,” Mr Rizutto said.
Sales of commercial properties are expected to decrease in 2012, as a result of a lack of available finance. Light industrial is the commercial property sector expected to show growth over the next 12 months. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Anthony Rizutto, Principal from First National Real Estate Nowra, on 02 4423 5555