QUEENSLAND OUTLOOK The Queensland property market is showing lots of potential for 2012, with signs already that a slow recovery is underway. In the last six months, the market has been falling, but this is expected to steady as we begin 2012 and the effects of the floods and cyclones wear off, and interest rates reduce. The mining sector will underpin activity in resource rich areas in 2012 but buyers in general will remain cautious, due to uncertain economies both here and overseas. Lower property prices and lower interest rates are increasing affordability. Spirits have lifted state-wide and with the announcement of the Commonwealth Games and the accompanying infrastructure investment, buyers should regain confidence in the market and return to the security of property investment. The key challenge facing the state’s 2012 property market is a vastly more competitive property market, which will see stronger negotiations for better deals on price, terms, conditions and settlements. Another challenge will arise from the axing of the stamp duty concessions for owner-occupiers on 1 August 2011. The full implications of this decision are still being played out in Queensland, but it is expected it will deter some home buyers from a purchasing decision given the costs expected to be added to the home – which may run into the thousands of dollars. Hot spots for the state will be driven around affordability issues and are considered to be around Gladstone, Sarina, Mt Isa and most towns at, or near to, the eastern seaboard or major mining and resources centres.
26
FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK