SOUTH AUSTRALIA OUTLOOK The South Australia property market is set to moderate even further in 2012, following a fairly steady but falling market in the second half of 2011. Stamp duty costs and inadequate first home buyer stimulus or concessions continue to stifle the market and as 2012 progresses, consumer confidence will continue to be a challenge for the market to overcome. However, anticipated cuts in interest rates will restore some confidence and BHP’s investment in the expansion of Olympic Dam will be a positive boost to the South Australia economy. Bowden is considered a hot spot for the state in 2012 because of its amenities and lifestyle appeal. City fringe areas will also prove popular for home buyers. Robe, which earlier in the decade was the second fastest growing town in South Australia, is anticipated to continue to benefit from sea-changers, along with Goolwa.
MARKET CONDITIONS Buyer confidence has fallen in recent months but is expected to improve as we enter 2012, as a result of reducing interest rates. Based on First National’s 2012 Property Market Outlook survey, ongoing lack of buyer confidence, the economic outlook and interest rate cuts will see the state’s market steady even further. Any movements will be relatively marginal.
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FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK