RURAL/REGIONAL PROPERTY MARKET The majority of members said they thought rural property prices would remain the same. However, 36% think they will trend downwards. Rural Property Prices – Next 6 Months National
NSW
VIC
QLD
SA
TAS
9%
10%
10%
–
33%
–
–
–
Down
36%
60%
20%
50%
–
–
–
–
Flat
55%
30%
70%
50%
67%
100%
100%
–
Up
WA NT - Alice
The majority of Victoria, South Australia, and all Tasmanian and Western Australia members said rural property would be flat, while in New South Wales and Alice Springs they said they would fall. In Queensland, members were evenly split between staying the same or falling. Rural rental property prices are expected to remain the same by most of the rural respondents (74%), while the balance said they might trend downwards.
Rural Rental Prices – Next 6 Months National
NSW
VIC
QLD
SA
TAS
9%
27%
–
–
–
–
–
–
Down
17%
27%
10%
20%
25%
–
–
–
Flat
74%
46%
90%
80%
75%
100%
100%
100%
Up
WA NT - Alice
New South Wales, Victoria, Queensland and South Australia were the only states where price drops were expected at all (27%, 10%, 20% and 25% of member respondents respectively). New South Wales was the only state where members said they expected any increases in rental prices (27% of members). Tasmania, Western Australia and Alice Springs all expected weekly rentals to remain at current levels. Key factors influencing rural property markets are the low Australian dollar and changing market conditions, due to ongoing consumer nervousness. Lifestyle properties are expected to dominate the rural property market across Australia in the coming six months, with 93% of members identifying this sector as representing the greatest growth opportunities.
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FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK – MID YEAR UPDATE