Media release – Date SCORESBY PROPERTY MARKET SHOWING SIGNS OF RECOVERY Adrian Ferris from First National Real Estate Stevenson Ferris expects the 2012 Scoresby 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 Scoresby is set to rebound in 2012, as a result of interest rate cuts and relative affordability,” Mr Ferris said in the First National 2012 Property Market Outlook released this week. The key challenges for the 2012 property market are seen as maintaining gradually improving buyer confidence, market price changes and job security. Global economies, such as those in Europe and America, have the potential to affect the Scoresby property market depending on the way in which they are reported on. A shortage of new housing development approvals by developers is reducing the gap between new homes and established units and townhouses, making the apartment/strata properties more attractive to home buyers. According to the Outlook, residential property prices in Scoresby are expected to remain flat in 2012, with the potential for increases of up to 5 per cent. “House and apartment/strata property prices recently underwent a process of correction, which has lured some buyers back into the market and is causing prices to stabilise to some degree,” Mr Ferris said. “An ongoing shortage of good size land for sale maintains price growth, which is expected to increase by up to 5 per cent in 2012.” The rental market should see vacancy rates ease in 2012, trending upwards with increases of up to 5 per cent. “Weekly rents will also trend upwards, increasing by up to 5 per cent as a result of buyer reluctance to commit to purchase, and so continuing to rent,” Mr Ferris said. Mr Ferris expects any increases in investor activity to be in the vicinity of 5 to 10 per cent as a result of optimal market conditions and improved affordability. “Investor activity is expected to be the strongest growth segment, as astute investors capitalise on reduced house prices and low interest rates, producing better yields and returns on their investment capital,” Mr Ferris said. Mr Ferris believes interest rates will decrease by up to 0.5 per cent over two consecutive hikes – one early in the year and one towards the middle of 2012 - which are expected to impact on
buyer confidence, stimulating the market, allowing for more vendors to put their homes up for sale. The carbon tax is expected to have an impact on the property market, potentially producing higher home and rent prices, as well as reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Adrian Ferris, Principal from First National Real Estate Stevenson Ferris, on 03 9763 9000.