Media release – Date HEALESVILLE PROPERTY MARKET SHOWING SIGNS OF RECOVERY Mark Gunther from First National Mark Gunther expects the 2012 Healesville property market to be quite subdued and says while there are encouraging signs, there is still some distance to go. “The current falling market in Scoresby is set to rebound in 2012, as a result of interest rate cuts and relative affordability,” Mr Gunther said in the First National 2012 Property Market Outlook released this week. The key challenges for the 2012 property market are seen by Mr Gunther as political and economic uncertainty together with increasing costs of living due to government taxes. “Local council elections next year may see a change in council, potentially impacting on the local property market if timber and associated industries’ jobs are retained,” Mr Gunther said. “The Shire of Yarra Ranges is continuing to push their Agenda 21 program, to stop any and all development and eventually dissuading people from living in the area.” According to the Outlook, property prices in Healesville are expected to remain flat in 2012, with the potential for movements of up to 1 per cent. “Council policy is stifling land development in the area, which will see land prices trending downwards in 2012, decreasing by up to 5 per cent,” Mr Gunther said. The rental market should see vacancy rates are expected to tighten in 2012, trending downwards while weekly rents will trend upwards, due to limited supply, increasing by up to 5 per cent. Mr Gunther expects any increases in investor activity are expected to be in the vicinity of 1 to 5 per cent as a result of improved returns and yields. “But, it is Upgraders who I expect to be the strongest growth segment, given optimal market conditions for home owners to buy bigger and better,” Mr Gunther said. Mr Gunther expects interest rates to decrease by up to 1.5 per cent, which are expected to impact on buyer confidence and stimulate the market. The economic events in Europe and America are impacting on buyer confidence making investors in particular nervous. The carbon tax is expected to have an impact on the property market, potentially producing higher home and rent prices, as well as reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Mark Gunther, Principal from First National Mark Gunther, on 03 5962 3030.