Media release – date GOLD COAST PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Dale Harris from First National Real Estate Burleigh says the Gold Coast 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 2012 begins and the effects of the floods and cyclones wear off, and interest rates reduce,” Mr Harris said in the First National 2012 Property Market Outlook released this week. The key challenges facing the region’s property market in 2012 are seen by Mr Harris as the lack of sales volumes and reducing consumer confidence. Interest rate drops will also prove a significant factor affecting the Gold Coast property market. “The Commonwealth Games in 2018 has improved consumer confidence to some extent, although it will be years before any real benefit is garnered for the Gold Coast region,” Mr Harris said. “Although, it is expected, in the short term, that the government will start new construction in 2012 of many new sporting facilities and athletes village for the Games. “Construction has been a massive part of the Gold Coast economy but in recent years has taken a dramatic drop resulting in many tradespeople having to commute to northern areas or in some cases, relocating their family to secure work in other states or North Queensland for the mining industry.” According to the Outlook, property prices on the Gold Coast are expected to flatten in 2012 across all sectors of houses, apartment/strata and land with movements kept to below 1 per cent. The rental market should see vacancy rates and weekly rent prices are expected to remain relatively flat in 2012, with movements kept to below 1 per cent. Mr Harris expects investors to represent the strongest growth in activity in the Gold Coast region with increased activity of between 1 and 5 per cent due to reduced prices, possible further rate cuts and increased consumer confidence in the area for construction jobs after securing the Commonwealth Games. He said interest rates should decrease by around 0.75 per cent which he expects will serve to stabilise the market. “There has been some increases in default mortgages for the Gold Coast region and this trend may continue for the first half of 2012 as a result of continued financial stress and increases in living costs,” Mr Harris said. The introduction of the carbon tax is also expected to impact on the property market, further reducing consumer confidence.
Copy ends â€“
Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Dale Harris, Principal from First National Real Estate Burleigh, on 07 5522 3100.