RURAL/REGIONAL PROPERTY MARKET Regional Australia is experiencing some of the most difficult market conditions seen. Falling prices, non-committal buyers, unrealistic vendors and consistently negative market reporting for the majority of 2011 have eroded confidence. However, increased housing affordability, good rains in New South Wales, Queensland and Victoria, and interest rate cuts, should combine to inject some much-needed confidence into the regional housing market. Over 2011, regional property markets have been influenced by economic factors such as the strength of the Australian dollar, commodity prices, demand for Australian produce and nervousness around job security. As such, the market has stagnated but this is expected to change into 2012 as confidence slowly starts to build, eventually returning as the year progresses. While interest is expected to develop for rural and regional properties, especially in the lifestyle sector, according to our rural survey respondents, there is not expected to be much movement in prices. Turnover of farming properties is expected to remain relatively low, however this will be dependent on farmer debt levels, commodity prices and government policies and changes – especially pertaining to the new carbon tax, council regulations in relation to development and zoning matters and general economic conditions both in Australia and overseas.
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FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK