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Brian Spring from First National Real Estate Keatley expects the Mt Gambier property market to moderate over the remainder of 2011, on the back of falling market throughout the first half of the year. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Mr Spring said in the First National Property Market Mid Year Update 2011 released this week. “Rising stock levels, together with reasonable buyer demand will help to steady the market in the coming six months.” According to the Update, in the main, property prices across all segments (house, apartment/strata and land) are expected to remain relatively flat, with any movements kept to a minimum of up to 1 per cent. Mr Spring believes the rental market is expected to stabilise, with strong tenant demand and a general shortage of rental property increasing competition and underpinning the rental market. “Movements in vacancy rates are expected to be less than 1 per cent, while weekly rentals will trend upwards, increasing by between 1 and 5 per cent,” Mr Spring said. Growth is expected by Mr Spring to come from investor activity, which is expected to increase by between 1 and 5 per cent, driven by renters outnumbering buyers in the market at the moment. “Investors are expected to represent the strongest growth in activity due to better rental yields and improved market conditions overall,” Mr Spring said. The Government’s move to introduce a carbon tax is not supported by First National members, primarily as a result of concerns about the impact on confidence, the economy, saleability of existing housing stock, and values. “However, more customers will seek energy efficient features when looking to buy a new home, due to the rising household energy costs and the challenge of maintaining a healthy home budget as energy becomes more expensive, and

energy efficiency takes on more significance in the buying decision,” Mr Spring said. “A carbon tax will also potentially decrease demand for homes that are not currently adapted for energy efficiency.” Mr Spring considered that Stamp Duty should be abolished altogether, as it only serves to stifle the property market. “This should only happen as long as the mooted plans for replacing it with other taxes such as a broad-based land tax, including the family home, or death duties are not carried through,” Mr Spring said. “And any talk of abolishing negative gearing should cease immediately.” The exclusion of any of these proposed policy changes from the recently announced state budget may be an indication that the Government does not intend to take such matters any further. Mr Spring said a key change for the property market, which will impact quite significantly, is the number of local government authorities throughout the state and territory who are amending their planning regulations to allow for higher density developments which should see activity increase. - copy ends – Issued by: First National Real Estate. For further information or to receive a copy the 2011 Property Outlook, Brian Spring from First National Real Estate Keatley on 08 8724 8966

Mt Gambier, Keatley SA  

Mt Gambier, Keatley SA - Media Release