Media release – Date PORT ARLINGTON PROPERTY MARKET SHOWING SIGNS OF RECOVERY Craig Abbey from First National Real Estate N.H. Abbey expects the 2012 Port Arlington property market to be quite subdued and says while there are encouraging signs, there is still some distance to go. “The current falling market in Portarlington is set to continue in 2012, due to a very sow property market,” Mr Abbey said in the First National 2012 Property Market Outlook released this week. The key challenge for the 2012 property market is seen by Mr Abbey as stimulating market activity by restoring consumer confidence which has flagged as a result of global economic events. According to the Outlook, residential property prices in Portarlington are expected to continue trending downwards, with decreases of between 10 and 20 per cent. The rental market should see vacancy rates trend upwards, increasing by between 5 and 10 per cent, while weekly rents will remain flat with potential movements of up to 1 per cent. Mr Abbey expects investors to be the strongest growth segment, with increases in activity expected to be in the vicinity of 1 to 5 per cent as a result of strong demand from holiday makers over the summer period. Interest rates are expected to decrease by up to 0.5 per cent in the first half of 2012 which help stimulate market activity. Mr Abbey said, “the economic events in Europe and America are impacting on the local Portarlington property market, deterring home owners from purchasing a second home and holding onto their savings until certainty and confidence returns to the market.” The introduction of the carbon tax is expected to affect the property market as well, by reducing home prices. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Craig Abbey, Principal from First National Real Estate N.H. Abbey, on 03 5259 2567.