Media release – date WHITSUNDAYS PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Paul Wellard from First National Real Estate Whitsunday Coast says the local property market is set to strengthen further in 2012, with the market already rising. “In the last six months, the market has been improving, and this will continue due to the resources boom and the strength of mining in the Whitsunday Coast region,” Mr Wellard said in the First National 2012 Property Market Outlook released this week. The key challenge facing the region’s property market in 2012 is seen by Mr Wellard as a shortage of supply, especially rental properties and transport. “The relocation of the workforce due to new mines opening will significantly impact on the Whitsunday Coast as will the lack of finance in the market for developers,” Mr Wellard said. “Reduce building and this will increase demand in rentals and so people will be forced into buying. “The Whitsundays will be a high growth area due to its proximity to Bowen and Mackay with approximately five new mines being opened by various large mining companies. Being a lifestyle destination will increase the number of miners whom wish to live in the Whitsundays. “Rental vacancies will decrease and this will fuel growth in the home buyer segment. It is hoped a decrease in interest rates will reduce demand or the Australian dollar and help ‘backpacker’ tourist providers. However, difficulties are still expected for the tourism sector until well into 2012.” According to the Outlook, residential property prices on the Coast are expected to trend upwards in 2012 across all sectors of houses, apartment/strata and land due to increasing demand and stock shortages as a result of increased mining activity. “Upward movements of between 5 and 10 per cent are expected although land price increases could be as much as between 10 and 20 per cent,” Mr Wellard said. The rental market should see vacancy rates trend downwards in 2012, decreasing by around 5 per cent, while weekly rents will trend upwards with shortages pushing up rents by between 5 and 10 per cent. Mr Wellard expcts any increases in investor activity to be between 5 and 10 per cent due to investors cashing in on the mining boom. “But it is Upgraders who I expect will represent the strongest growth in activity in the Whitsundays region due to miners relocating to the region,” Mr Wellard said. Mr Wellard highlighted the Airlie Beach Foreshore and new infrastructure projects, coupled with strong job prospects as serving to attract more miners and their partners to live in the area.
He expects interest rates to decrease by between 0.25 and 0.5 per cent which he says should have a favourable impact on the property market, especially for investors and upgraders seeking to capitalise on improved market conditions. “The economic events in Europe and America will continue to impact on buyer confidence, causing uncertainty and eroding consumer confidence to some degree, although the mining boom will counter-act some of this nervousness,” Mr Wellard said. The introduction of the carbon tax is expected to affect the local property market, further reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Paul Wellard, Principal from First National Real Estate Whitsunday Coast, on 07 4948 3456.