Issuu on Google+

Media release – date COFFS COAST PROPERTY MARKET SET TO IMPROVE IN 2012 Barry Booth from First National Real Estate Coffs Coast expects the current trend of a falling market in the Coffs Coast region is set to continue into 2012, due to supply exceeding demand, with the potential for the market to improve as the year progresses. Mr Booth said in the First National 2012 Property Market Outlook released this week, the key challenge for the Coffs Coast property market in the coming six months is the lack of turnover and reducing consumer confidence due to market conditions and global economies. “Any potential recovery will be hampered should interest rate reductions cease to continue and development in the region is being stymied by continued increasing costs of compliance for the development industry which discourages investment in a marginal market,” Mr Booth said. According to the Outlook, an oversupply of stock is placing downward pressure on residential property prices in the Coffs Coast district which is expected to see decreases of up to 5 per cent across all sectors of houses, apartment/strata and land. “Land prices in particular are experiencing a decline in demand due to established properties being more affordable than newly built ones,” Mr Booth said. The rental market should see vacancy rates tighten, decreasing by up to 5 per cent due to the lack of new building and continued population growth strengthening demand for rental accommodation. “This shortage of supply to meet ongoing demand will place upwards pressure on weekly rent prices, which are expected to increase by up to 5 per cent,” Mr Booth said. Mr Booth expects investor activity to represent the strongest growth for the Coffs Coast region, set to increase by up to 5 per cent in the next 6 months. “This growth results from investors, self funded retirees and self managed super funds who are fleeing an under-performing stock market and realising property represents better safety for their capital and seek to capitalise on improved affordability which should yield stronger returns for their investment funds,” Mr Booth explained. Interest rates are expected to remain unchanged for the coming six months, but even so, default mortgages are expected to increase in the Coffs Coast region due to increasing unemployment. The economic events in Europe and America is expected to impact on consumer confidence, serving to undermine it.

- copy ends Issued by: First National Real Estate For further information or to receive a copy of the 2012 Property Market Outlook, Barry Booth, Principal from First National Real Estate Coffs Coast, on 02 6652 1144

Coffs Coast - Media Release