Waverly - Media Release

Media release – Date WAVERLEY PROPERTY MARKET SHOWING SIGNS OF RECOVERY Thomas Som from First National Real Estate Waverley City expects the 2012 Waverley 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 Waverley is set to continue in 2012, due to reduced buyer confidence,” Mr Som said in the First National 2012 Property Market Outlook released this week.

“Low consumer confidence is the key challenge for the property market to overcome in 2012 and this is being directly impacted by the events of global economies such as Europe and America.”

According to the Outlook, residential property prices in Waverley are expected to continue trending downwards, with decreases of up to 1 per cent for houses as the market levels out.

“There is also an oversupply of apartment/strata properties on the market which could see prices in this sector drop even further by between 5 and 10 per cent,” Mr Som said.

“Land prices should remain relatively flat, although there is potential for them to increase by between 1 to 5 per cent given the scarcity of land in our region.”

The rental market should see vacancy rates tighten, trending downwards as people continue to rent rather than buy given low consumer sentiment.

“As a result, this will create a shortage of supply which will put upward pressure on weekly rent prices, which are expected to increase by between 5 and 10 per cent,” Mr Som said.

Mr Som expects any increases in investor activity to be in the vicinity of 5 to 10 per cent as a result of prime market conditions making it an ideal time to buy.

“But it is the first home buyers that I believe will represent the strongest growth in activity in the Waverley region in the coming six months, driven by population growth especially from immigrants,” Mr Som said.

Interest rates are expected to decrease by up to 0.25 per cent in the first half of 2012, although this is not expected to impact dramatically on the local Waverley property market.

The economic events in Europe and America are expected to continue to impact on buyer confidence.

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

For further information or to receive a copy of the 2011 Property Outlook, Thomas Som, Principal from First National Real Estate Waverley City, on 03 9560 3988.