INTRODUCTION First National Real Estate has again surveyed its 400+ member network to provide its 2012 Property Market Outlook – Mid Year Update. This Update serves to compare actual market conditions with the predictions of economic commentators and property market analysts. First National Real Estate members are broadly distributed across Australia, throughout cities, suburbs and country towns. As such, the network’s estate agents are exposed to mainstream Australia and are intimately acquainted with the views of the public, their response to government initiatives, their levels of confidence and their approach to property investment. Our agents’ survey responses have been compiled to develop a picture of the Australian property market’s performance over the last six months, and their outlook for the coming six. Where we refer to ‘members’ throughout this Update, we apply this term to those network members who responded to the various parts of the survey. Where we refer to ‘Chairs’ we refer to the First National State Chairs for respective states. Results and trends highlighted in this document represent the majority view of all respondents. A full breakdown of survey responses can be provided if requested. There is an overall Australian outlook, followed by a state-by-state outlook and then, most importantly, an outlook that provides an in-depth overview of what the residential, rental and commercial property markets are doing at the local level. In the light of the doom and gloom in global economies and the effect on the market here in Australia, the domestic property market is holding up quite well and the second half of 2012 should see things stabilise further, if not slightly improve. There is an overall sense of optimism among First National’s members that the current prime buying conditions will stimulate activity across all sectors. According to the network’s members, the strongest growth is expected to be in the upgrader and investor sectors, for all states except Western Australia, where first home buyers are expected to be in the best position to capitalise on bargain properties as a result of improved affordability and low interest rates. Weak consumer sentiment and nervousness around job security will keep the housing market soft. While there are many positive signs that the market has turned a corner, these negative indicators will act as barriers, impeding the process to some degree – making any recovery slow and gradual.
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FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK – MID YEAR UPDATE