National Outlook First National’s State Chairmen are divided on the type of market it has been over the last six months, confirming the variety of market conditions nationally. Half say it has been steady and the balance say it has been falling. However, there is a consensus among the Chairmen that, for the remainder of 2011, the market will remain relatively steady (83.3 per cent) with some potential for price falls in Victoria. The main reasons cited being market uncertainty, consumer nervousness and affordability pressures. There is also consensus that the rental market will continue to tighten, putting further pressure on weekly rents and providing excellent yields and returns for investors – which all Chairmen agree will see an increase in activity for this segment of the market. Interest rate movements of up to 1 per cent are anticipated: • SA and WA chairs said they will likely remain unchanged • Tasmanian, Queensland, Victorian and NSW Chairs say they expected them to increase; and • the NT Chair said he expected them to decrease
Property Prices First National expects property prices to remain relatively flat across the board with potential for falls in house prices in Victoria and apartment/strata property price falls in Queensland. • 83.3 per cent of Chairmen expected house prices to remain flat (NT, Tasmania, SA, Queensland and NSW), while Victorian house prices could fall. Should this eventuate, it is seen as more a correction of Victorian property prices, following their strong performance over recent years. • 83.3 per cent of Chairmen expected apar tment/strata proper ty prices to remain flat (NT, Tasmania, SA, Victoria, NSW) while Queensland apartment property prices could fall. • All State Chairmen expected land prices to remain flat for the rest of 2011.
First National Real Estate 2011 Property Market Outlook 15
First National Real Estate Mid Year Property Outlook 2011 - Tweed City NSW