Media release – Date LYNBROOK PROPERTY MARKET SHOWING SIGNS OF RECOVERY Sachin Arora from First National Real Estate Reliance expects the 2012 Lynbrook 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 Lynbrook is set to rebound in 2012, as a result of interest rate cuts and relative affordability,” Mr Arora said in the First National 2012 Property Market Outlook released this week. The key challenges for the 2012 property market are seen by Mr Arora as stimulating market activity and reducing large stock volumes. “Significant factors affecting the local property market in the coming six months are a drop in immigration numbers and reduced consumer confidence due to job security resulting in low sales volumes,” Mr Arora said. According to the Outlook, property prices in Lynbrook are expected to remain flat in 2012, with the potential for decreases of up to 5 per cent. “Decreasing land prices are a result of an influx of land releases producing an oversupply of land in the area,” Mr Arora said. The rental market should see vacancy rates ease in 2012, trending upwards and increasing by up to 5 per cent, while weekly rents will trend downwards, decreasing by up to 5 per cent. Mr Arora expects any increases in investor activity to be in the vicinity of 1 to 5 per cent as a result of improved market conditions yielding better returns. “But it is the first home buyers I expect to be the strongest growth segment, given optimal market conditions of low interest rates and affordable home prices,” Mr Arora said. Interest rates are expected to decrease by up to 0.5 per cent, which are expected to steady the market in terms of price and increase sales volumes. 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, further reducing consumer confidence. - Copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Sachin Arora, Principal from First National Real Estate Reliance, on 03 9702 7855.
Published on Jan 10, 2012