National Outlook Rental Market Vacancy rates are expected to tighten even fur ther in SA, Victoria and NSW, ease slightly in NT and Queensland and remain flat in Tasmania. However, all State Chairmen with the exception of NT, expected weekly rents to trend upwards due to ongoing strong demand for rental properties. The NT expected weekly rents to remain steady. All State Chairmen expected an increase in investor activity of between 1 and 5 per cent due mainly to improved rental yields and returns, less competition from first home buyers and easing of lending criteria.
Growth While there was consensus that investors would return to the market, only NSW expected this segment to generate the strongest growth over the next six months. NT, Tasmania, SA and Queensland all expected the strongest growth in activity to come from upgraders, while Victoria said it would be from the first home buyer segment.
Changing Market Conditions According to First National State Chairmen, the Government has a lot to answer for the state of consumer nervousness, given its talk around certain property market policy changes. All agreed that they did not support the governmentâ€™s proposed carbon tax and with the exception of Victoria there was general consensus that a carbon tax would increase the number of customers seeking energy efficient features. Tasmania, SA and NSW said they thought stamp duty should be abolished altogether. NT, WA, Queensland and Victoria said it should not, but primarily because they believed it would just be replaced with another tax from somewhere else. The majority of Chairmen believed stamp duty should not be replaced by a broad-based land tax (including the family home) or with death duties.
16 First National Real Estate 2011 Property Market Outlook