Executive Summary First National Real Estate has once again surveyed its 450+ member network to update its 2011 Property Market Outlook with this Mid-Year Update. This update serves to contrast actual market conditions experienced against the predictions of economic commentators and property market analysts. First National Real Estate members are broadly distributed across Australia, throughout cities, suburbs and country towns. Their survey responses have been compiled to develop a picture of the Australian property market’s performance over the last six months, and their outlook for the coming six months. There is an overall Australian outlook, followed by a state-by-state outlook and then, most impor tantly, a local level outlook that provides an in depth overview of what the residential and rental proper ty markets are doing. What is evident from the first six months of 2011 is that the Australian property market is fundamentally resilient, having stood the test of the Global Financial Crisis – the only country that can lay claim to this. While the property market has levelled out, and consumer confidence has deteriorated, the industry is primed to face the next set of challenges. Conditions have been tough, resulting in 10,000 agents leaving the industry in the past 12 months, but dedicated real estate agents, principals and industry representatives have been creative and strategic in conducting their business over the last few years, so they are in a strong position to move forward today. The biggest challenge the industry currently faces is to restore consumer confidence, where there is growing nervousness, due to overall uncertainty about the market’s direction here in Australia, as well as overseas. Consumer confidence has dropped to a nine year low, which is largely a consequence of three consecutive rate hikes by the Reserve Bank of Australia (RBA), rising costs of living and largely discredited discussion of a property bubble. One cer tainty is that 2011 is the year of the investor. Current market conditions are ideal for investors with rapidly rising rental returns, low, relatively stable interest rates, growing wages, strong employment and low vacancy rates.
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First National Real Estate 2011 Property Market Outlook