Executive Summary There has been much speculation, confusion and debate around the Australian property market in the first six months of 2010 as the market settles back down, following the turbulent times of the Global Financial Crisis. What has become clear is that views are polarised, there is very little consensus on predictions for the remainder of the year, concern about the impact of the Government’s proposed mining super profits tax on the availability of future bank mortgage funding, and it may be too early to get a clear picture of what will happen overall. What is known is that it is starting to have an impact on consumer confidence. The caution here is not so much the effect this proposal is having today, but the flow on effect to the property market in two to three years’ time if this is not resolved quickly and some of these future projects do not start as a result. With more than 420 members on the ground in cities, suburbs and country towns across Australia, the First National Real Estate network asked its members for their view of their local property market in order to gain a state-wide impression of market conditions that would then be put together, like pieces of a jigsaw, to provide the big-picture national outlook. Consensus amongst First National members is that although prices growth will slow, or even slip backwards in some parts of Queensland and Western Australia, the property market will broadly gain strength and they can approach the next six months with optimism as the market continues to provide unique opportunities for home buyers. Supply and demand still dominate the market and will be the key drivers of the property picture into the future. Unless all levels of government work together to address this crippling growth factor, real estate in Australia will be unable to realise its real potential. Small investors and people looking to upgrade their home were already returning to the market in the first half of 2010, and First National anticipates this trend will gain even more momentum in the second half of the year. Australia’s leading mortgage aggregator’s figures show almost 40 per cent of loans drawn in April were to investors – the highest number recorded.
First National Real Estate 2010 Property Outlook Mid Year Update
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