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Media release – Date WARRADALE PROPERTY MARKET STRENGTHENS MODERATELY Brett Lewis, from First National Real Estate Lewis Prior expects the Warradale property market to moderate in 2012, following a falling market in the second half of 2011 as interest rates steady or reduce and sellers become more realistic. “Global economies, interest rates and consumer confidence will continue to affect the property market in the coming six months, putting further pressure on prices,” Mr Lewis said in the First National 2012 Property Market Outlook released this week. “Investors will be the key for the market in 2012, as the reality sets in that real estate is a long term investment and offers the very unique proposition that it can be seen, smelt and touched. “Even in a slow market, there is still a return on the investment, and while it may not be the abnormal returns experienced over the period 1998 to 2007, property is still a better option for long term financial security and growth.” According to the Outook, property prices in Warradale are expected to flatten in 2012 across all sectors of houses, land and apartment/strata properties. “Movements will mainly be up to 1 per cent with prices levelling out but a slow, consistent demand will serve to maintain the status quo,” Mr Lewis said. “Static land values are a result of unmotivated buyers to build or builders and developers acting too slowly. “While there has been some major spending in the last 12 months, primarily on the State Aquatic Centre, 2012 will be a year of consolidation, where changes to Local Council Development guidelines will slow developing in the local area due to tighter policies.” The rental market should see vacancy rates in Warradale tighten in 2012, decreasing by up to 5 per cent, while weekly rents are expected to remain flat due to some excess in available stocks taking some time to be absorbed. Mr Lewis expects any increases in investor activity to be up to 1 per cent given the ideal market conditions making it the perfect time to purchase. “However, lack of confidence is still acting as a road block for many investors and large Stamp Duty and Land Tax impost deterring action,” Mr Lewis said. “But, it is the Retirees segment I expect to produce the strongest growth in activity in 2012 due to the region’s growing aging population and I hope the lower interest rates will entice First Home Buyers back into the local market.” Interest rates are expected to decrease by up to 0.5 per cent in the first six months of 2012, which will hopefully increase affordability and instill confidence.


“However, overseas factors will still be a major consideration for many especially as it relates to lending criteria which may make it more difficult for First Home Buyers and Self Employed,” Mr Lewis said. The introduction of the carbon tax is expected to reduce consumer confidence, further impacting the Warradale property market. - Copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Brett Lewis, Principal from First National Real Estate Lewis Prior, on 08 8358 0555

Warradale - Media Release  

Warradale - Media Release

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