Media release – Date MT BARKER PROPERTY MARKET TO FURTHER MODERATE IN 2012 David Nitschke from First National Real Estate Pope Nitschke expects the Mt Barker property market to further moderate in 2012, following a steady market in the second half of 2011. “Global economies, interest rates and consumer confidence will continue to affect the property market in the coming six months, putting further pressure on prices,” Mr Nitschke said in the First National 2012 Property Market Outlook released this week. “Planned developments in the region should invigorate job growth and help restore consumer confidence to some degree. “The proposed three storey $40m shopping centre planned for Mt Barker’s town centre has the potential to create in excess of 200 retail jobs. Woolworths has identified Mt Barker as a growing region, with potentially a lot of customers who will respond well to the convenience choice and value offered by a Big W-based centre.” According to the Outlook, residential property prices in Mt Barker are expected to flatten in 2012 across all sectors of houses, land and apartment/strata properties with movements mainly up to 1 per cent. The rental market should see vacancy rates in Mt Barker tighten in 2012, decreasing by up to 5 per cent, while weekly rents are expected to increase by up to 5 per cent. Mr Nitschke expects any increases in investor activity to be up to 5 per cent as they realise the value in property currently and recognise it has continued to perform well despite what may be happening in the rest of the country. “But it is the Upgrader segment I expect to produce the strongest growth in activity in 2012 due to the value priced properties available in the region,” Mr Nitschke said. Interest rates are expected to decrease further in the first six months of 2012, which will hopefully instil more confidence in buyers. “However, economic events in Europe and America will continue to make buyers a little wary,” Mr Nitschke said. The introduction of the carbon tax is expected to reduce consumer confidence, further impacting the Mt Barker property market. The Mt Barker commercial property market is expected to stabilise in the first six months of 2012, with any movements in prices, vacancy rates and rentals kept to below 5 per cent. Decreasing interest rates are expected to increase buyer confidence.
The carbon tax is considered to potentially delay any real movements on more energy efficient commercial properties. “Solar power is considered the leading energy efficient feature which will make a commercial property more rentable in Mt Barker,” Mr Nitschke said. According to Mr Nitschke sales of commercial properties in Mt Barker are expected to increase as more business operators are drawn by the region’s attractiveness. “Most growth in the Mt Barker commercial property market in 2012 will come from light industrial,” Mr Nitschke said. - Copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, David Nitschke, Principal from First National Real Estate Pope Nitschke, on 08 8389 9600
Published on Jan 9, 2012