Introduction Our members are reporting the market is moving faster and buyers are becoming more decisive: City Sydney
Days on Market* 35
Vendor Discounting 6.1%
Melbourne
38
8.7%
Brisbane
70
7.7%
Adelaide
70
7.7%
Perth
77
5.1%
Darwin
56
4.3%
Canberra
37
5.0%
Hobart
81
12.2%
Vendor discounting levels fell in January, with evidence that buyers and vendors are becoming more realistic, adjusting their price expectations to find some common ground, and this points to an improving market. The average discount on a typical house was 7.5 per cent in January 2013, compared to 8.16 per cent for the same time the previous year. As of June, the average discount has fallen to 6.8 per cent, according to RP Data. Other good news for the property market in the coming six months is the gap between the resources and non-resources driven regions and states is closing. This should result in the market becoming more balanced across the country, creating stability and further supporting and strengthening any recovery. The quietening in the resources sector is bringing new challenges, such as uncertainty over policy changes, for the market in resources driven states such as Queensland and Western Australia. However, some of the negative impacts may be offset by positive market trends such as increased interest from superannuation fund investors, finance loosening up to make funds more readily available for buyers, and improvements in forecast growth for the oil and gas sector. A key trend to watch for is the rise of the foreign investor, especially in the commercial property market where they have increased by $11 billion since 2007, with almost 62 per cent of this being in the office sector.
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First National Real Estate | 2013 Property Market Outlook Mid Year Update