Australian Property Magazine has reported the following:
2012 is set to be a year of recovery and consolidation for most of Australia’s property markets. Some areas will enjoy solid growth driven by latent demand or resources while other areas will languish.
Last year’s market was dominated by natural disasters, mixed economic signals and fragile consumer sentiment. Australian Property Monitors (APM) noted that national median house prices were down by 4.2 per cent but were predicted to rise by three to five per cent in 2012. Sydney’s median house price only declined by 0.9 per cent last year compared to 3.1 per cent in Brisbane, 1.2 per cent in Melbourne, 2.2 per cent in Perth, 1.4 per cent in Adelaide and 3.5 per cent in Darwin.
The traditional spring selling season in 2011 did not eventuate. It was more of a fizzle and pop that saw lacklustre results. Auction rates hovered around 50 to 60 per cent during 2011. Year on year results from October saw Sydney’s median house price fall 2.3 per cent as reported by APM. In contrast, Rismark International house price model recorded a 0.5 per cent decline in median house prices over the year to the end of November. Sydney was one of the most resilient property markets of all capital cities over 2011. Brisbane and Melbourne recorded 7 per cent and 5.6 per cent decreases respectively over the same period. Rismark International recorded a very small 0.1 per cent increase in national house prices in November, which is signalling a projected rebound in property prices.
Here are my predictions for the year ahead:
• The national economy is set to grow strongly on the back of the mining and resources sector. Treasury estimates are for around three to four per cent growth in gross domestic product (much to the envy of the rest of the developed world).
• Immigration is likely to increase as the demand for skilled workers intensifies from economic growth. This will flow on to increased housing demand.
• The prestige market will continue to struggle to gain traction. With a subdued sharemarket, the level of executive bonuses is limited and buyers are cherry picking the stock that’s available at the top end of the market.
Brisbane this time last year was under water with the devastating floods. Key price drivers including interstate migration, reconstruction programs and the massive resource sector investments in regional areas should see solid price growth in Brisbane of over five per cent.To read more visit
http://www.apimagazine.com.au/blog/2012/01/property-predictions-for-2012/
