Media release – date O’CONNOR PROPERTY MARKET SET TO IMPROVE IN 2012 David Whittem from Capital First National Real Estate expects the current trend of a falling market for O’Connor is set to continue into 2012, due to lack of consumer confidence, with the potential for the market to improve as the year progresses. Mr Whittem said in the First National 2012 Property Market Outlook released this week, restoring confidence was the key challenge for the O’Connor property market to face in the first six months of 2012 with the biggest influences being interest rates and impacts of global economies coupled with local politics as they are creating doubt and indecision. “Sellers are reluctant to drop their prices after experiencing a rising market for 10 years up to the first quarter of 2011, and buyers are no longer having a sense of urgency to act as there is more choice and the market has slowed,” Mr Whittem said. “The impost and increase of betterment tax on areas zoned for redevelopment may cause developers to increase prices on new units or to shy away from the established inner areas and look to the new suburbs.” According to the Outlook, a lack of investor confidence is keeping property prices in the O’Connor district relatively flat and this should continue into the new year across all sectors of houses, apartment/strata and land. “An oversupply of available housing will keep a ceiling on house prices and land will continue to be controlled by government and broadacre developers, serving to keep the market flat,” Mr Whittem said. The rental market should see vacancy rates ease, increasing by up to 5 per cent with weekly rents remaining steady. Mr Whittem said ongoing economic negativity will keep investors at bay, with activity for this market segment expected to increase by up to 1 per cent. “The strongest growth in activity for the O’Connor region is expected to come from upgraders with a renewed confidence in the value of property,” Mr Whittem said. Mr Whittem expects interest rates to remain unchanged or the first half of 2012, with the economic events in Europe and America expected to have the greatest impact on consumer confidence, which is already being experienced. - copy ends Issued by: First National Real Estate
For further information or to receive a copy of the 2012 Property Outlook, David Whittem, Principal from First National Real Estate Capital, on 02 6249 6422