Media release – date WEST RYDE PROPERTY MARKET SET TO MODERATE IN 2012 Nicholas Matulic from First National Real Estate West Ryde expects the current rising market for West Ryde to moderate in the coming six months, due to global economic events, and the first home buyers stamp duty concessions finishing. “Interest rates will factor significantly for the property market in 2012, as will consumer confidence which will potentially impacted by the carbon tax introduction and global economies of Europe and America as they directly effect Australia’s money markets,” Mr Matulic said in the First National 2012 Property Market Outlook released this week. The carbon tax and sourcing new properties are considered the key challenges facing the West Ryde property market in 2012 but the completion of the $150 million West Ryde Village development should provide a boost, stimulating activity to some degree. According to the Outlook, residential property prices are expected to be a bit of a mixed bag with house prices set to rise in the coming six months and increasing by up to 5 per cent as a result of steady growth over recent times. “Apartment/strata prices are set to decrease by up to 5 per cent with stamp duty concessions finishing and reducing first home buyer activity and land prices are set to remain flat with movements of up to 1 per cent due to limited available stocks,” Mr Matulic said. The rental market will continue to perform strongly with vacancy rates tightening by between 5 and 10 per cent resulting from the interest rate drops making competition much more fierce. Weekly rents are expected to trend downwards, with decreases of up to 5 per cent in the light of improving affordability and on the back of recent rises. Mr Matulic expects investor activity to increase by between 5 and 10 per cent, but says it is the upgrader segment which he expects to show the strongest growth in activity as money is cheaper to borrow for them. Interest rates are expected to decrease by up to 0.5 per cent which should improve market conditions and bolster consumer confidence, providing some much needed relief for many. The Outlook says the commercial property market in West Ryde will be difficult in 2012 as a result of a number of contributing factors, including the tightening of bank funding and lack of confidence as well as the introduction of the carbon tax which is seen as just hot air and requiring something more practical to be done at the commercial property owner level. “However, decreasing interest rates should aid consumer confidence and hopefully banks will be less stringent in their policies,” Mr Matulic said.
Between 1 and 5 per cent of clients seek energy efficient features when looking to lease or purchase a commercial property, with water recycling proving the most popular for improved rentability. Mr Matulic expects sales of commercial properties to decrease in the West Ryde region over the coming 12 months, as businesses seek to trade down due to a lack of finance availability and says heavy industry will be the commercial property sector to show growth in 2012. - copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Outlook, Nicholas Matulic, Principal from First National Real Estate West Ryde, on 02 9874 1142