Media release – Date WODONGA PROPERTY MARKET SHOWING SIGNS OF RECOVERY Doug Sanderson from First National Real Estate Wodonga expects the 2012 Wodonga 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 Wodonga is set to rebound in 2012, due to the strong local economy in the region,” Mr Sanderson said in the First National 2012 Property Market Outlook released this week. The key challenge for the 2012 property market is seen by Mr Sanderson as building consumer confidence in the face of tough global economies. “Significant factors affecting the local property market in the coming six months are the introduction of the carbon tax and overseas events, both of which have the potential to further erode consumer confidence,” Mr Sanderson said. According to the Outlook, residential property prices in Wodonga are expected to remain flat in general. “House and apartment/strata property price movements will be kept to below 1 per cent, while competition from developers may see land prices trend downwards, with decreases of between 1 and 5 per cent,” Mr Sanderson said. The rental market should see vacancy rates trend downwards, decreasing by up to 1 per cent, while weekly rents will trend upwards with demand pushing rents up by between 1 and 5 per cent. Mr Sanderson expects investors to be the strongest growth segment, with increases in activity expected to be in the vicinity of 5 to 10 per cent as a result of real estate offering better turns than shares, especially with the current low property prices. Interest rates are expected to decrease in the first six months of 2012, which is expected to improve consumer confidence and make property even more attractive for investors. Mr Sanderson said there was potential for default mortgages to increase in the Wodonga region in cases where young couples over-borrowed to get the first home buyers grant. The economic events in Europe and America are impacting on buyer confidence as they impact to some extent on local economies. The carbon tax is expected to have an impact on the property market, further reducing consumer confidence and producing higher home prices. -
Copy ends –
Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Doug Sanderson, Principal from First National Real Estate Wodonga, on 02 6024 9222.