Victoria Outlook The Victorian proper ty market is expected to flatten out over the remainder of 2011, on the back of a steadying, and in some cases falling, market during the first half of the year. Financial uncertainty combined with rising living and utility costs are slowing the market down, although conditions are still good for home buyers, particularly investors. The State Budget decision to lower stamp duty prices for first home buyers should help stimulate this segment of the market. Consumer confidence, as a result of uncer tainty about economic, global and market conditions is causing people to feel more vulnerable, so they are saving more and spending less – all of which is impacting on the proper ty market. The First National Property Market Outlook Mid-Year Update Survey shows 60 per cent of Victorian member respondents said they anticipated the market to steady in the coming six months, 20 per cent said they thought it would fall and 20 per cent said they believed it would rise. Property Prices In the main, property prices for house and apartment/strata segments are expected to flatten out or trend downwards, with any movements kept to a maximum of 5 per cent. Land prices have the potential to trend upwards in certain areas. The largest group of Victorian survey respondents (46.6 per cent) said house prices would remain flat, 33.3 per cent said they would fall and 20 per cent said they would trend upwards.
22 First National Real Estate 2011 Property Market Outlook