WAVERLEY OUTLOOK The Waverley property market outlook for 2012 will be quite subdued and while there are signs of a recovery on the way, there is still some distance to go. The current falling market in Waverley is set to continue in 2012, due to reduced buyer confidence. Low consumer confidence is the key challenge for the property market to overcome in 2012 and this is being directly affected by the events of global economies such as Europe and America. RESIDENTIAL MARKET Property Prices Property prices in Waverley are expected to continue trending downwards, with decreases of up to 1 per cent for houses as the market levels out. There is also an oversupply of apartment/strata properties on the market, which could see prices in this sector drop even further by between 5 and 10 per cent. Land prices should remain relatively flat, although there is potential for them to increase by between 1 to 5 per cent given the scarcity of land in our region.
Rental Market Vacancy rates are expected to tighten, trending downwards as people continue to rent rather than buy given low consumer sentiment. As a result, this will create a shortage of supply which will put upward pressure on weekly rent prices, which are expected to increase by between 5 and 10 per cent.
Growth Any increases in investor activity are expected to be in the vicinity of 5 to 10 per cent as a result of prime market conditions making it an ideal time to buy. First home buyers will represent the strongest growth in activity in the Waverley region in the coming six months, driven by population growth especially from immigrants.
16
FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK