NT/ALICE SPRINGS OUTLOOK Growth Investor activity is expected to increase by between 5 and 10 per cent, driven by interest rate reductions and strong regional employment. The strongest growth, however, is expected to be from the upgrader segment, due to continued strong employment in Alice Springs. Mount Johns Valley will continue to attract steady interest for vacant lots in the prestige sector of the market.
Changing Market Conditions Interest rates, which will determine what happens in 2012 with the Alice Springs property market, are expected to decrease by up to 5 basis points in 2012, providing a slight kick to the market as the year progresses. Current global economic conditions, particularly in Europe, the US and China, will continue to reduce consumer confidence, which presents the greatest challenge for the Alice Springs property market in 2012. The carbon tax is expected to produce higher home prices on its introduction, which may unsettle consumers once again.
COMMERCIAL MARKET Commercial sales and leasing has been relatively busy in 2011. Some significant sales such as an office building in Alice Springs, and a new government office block being built in the CBD catering for growth in the government sector, will impact on the ability of ‘B’ class tenancies to attract premium rates. First National Commercial’s sale of Jacana House in Darwin for $58 million underscores the demand for A grade, energy efficient commercial buildings in the Territory. Commercial property prices will remain fairly stable in 2012, following the trend of 2011, although there is potential for some movements of up to 5 per cent. The anticipated decrease in interest rates may assist the commercial property market in Alice Springs, but banks’ lending criteria will also need to change to have any significant impact. The introduction of the carbon tax has the potential to delay any real movement on more energy efficient commercial properties.
2012 PROPERTY MARKET OUTLOOK FIRST NATIONAL REAL ESTATE
41