Media release – Date SPEARWOOD REGION PROPERTY MARKET STEADIES FOR 2012 Jim Davies from First National Real Estate Davies expects the region’s property market to continue to moderate and perform steadily, with increased buyer interest indicating the market has bottomed. “The key challenge in 2012 will be a lack of listings given that owners are losing their desire to sell due to low property prices,” Mr Davies said in the First National 2012 Property Market Outlook released this week. The main factor expected to impact the property market in 2012 will be buyer confidence and events on the global economic stage. “Media reporting on the economic events of Europe and America have particular potential to impact buyer confidence and add to existing nervousness,” Mr Davies said. According to the Outlook, residential property prices for all sectors, houses, apartment/strata and land in the Spearwood and surrounds region are expected to remain flat, with the potential for increases of up to 1 per cent. The rental market should see vacancy rates in Spearwood and surrounds trend downwards in 2012, tightening by between 1 and 5 per cent, as demand increases. “Until real estate ownership is once again a viable option, people continue to seek rental accommodation,” Mr Davies said. “The growing demand for rental properties will push weekly rents upwards, increasing by between 1 and 5 per cent as well.” Mr Davies expects investors will spearhead growth activity in the Spearwood and surrounds property market, with increases in investor activity expected to be between 1 and 5 per cent. “Investors are coming back to the market because of lower property prices, higher rental yields and lack of confidence in shares,” Mr Davies said. Interest rates are expected remain unchanged in first half of 2012. The introduction of the Carbon Tax is expected to impact the Spearwood and surrounds property market, serving to further reduce consumer confidence. -
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Issued by: First National Real Estate For further information or to receive a copy of the 2011 Property Outlook, Jim Davies, Principal from First National Real Estate Davies, on 08 9418 5555.