Market conditions in the Adelaide Hills/Mount Lofty Ranges region will strengthen in the first half of 2013, as a result of improving consumer confidence and recent State Government incentives according to the First National Real Estate 2013 Property Market Outlook
, released this week, is based on a survey of the 400+ member network, drawing on its experience at a grass roots level and provides insight into what member agents expect the market to do.
“Confidence levels seem to be improving among purchasers and the recent announcement of a grant of $8,500 for new residential construction up to $400,000 is showing signs of stimulating new building enquiry,” Mr David Nitschke, Principal, First National Real Estate Pope Nitschke said.
“Over the last six months the market had steadied and this is expected to continue in the coming six months.”
highlights the key performance indicators will remain stable in the coming six months with the average number of days a property remains on the market remaining steady, property stocks holding and potential for sales to increase – all signs the market is primed to turn.
“There is some talk the bottom of the property cycle will be reached in 2013,” Mr Nitschke said.
“But a combination of factors including buyers holding off as they wait for the market to bottom, ongoing economic uncertainty in domestic and international markets, and job insecurity/nervousness is keeping the market soft, even in light of improved affordability levels.”
According to the Outlook
, stock levels matching enquiry levels is serving to keep property prices across all sectors of houses, apartment/strata and land, relatively flat.
“However land enquiries are expected to increase in 2013 as a result of the state government incentives for building new homes,” Mr Nitschke said.
“This will also produce an increase in investor activity for the Adelaide Hills/Mount Lofty Ranges region.”
Mr Nitschke expects first home buyers will have the strongest growth in activity in the coming six months, especially with the additional grant of $15,000 to first home owners for construction of a new dwelling.
For the rental market, the Outlook
says an ongoing low vacancy rate will continue to place upward pressure on weekly rental prices.
Interest rates are expected to drop further, which should serve to improve buyer confidence and stimulate activity, especially in the Entry Level market where properties are prices below $350,000 and where most activity will be seen.
Mr Nitschke believes the floating of the Chinese currency will have a positive impact on Australia’s property prices.
Solar power continues to be the most sought after energy efficient feature of a property in the Adelaide Hills/Mount Lofty Ranges region.
The Adelaide Hills/Mount Lofty Ranges commercial property market is expected to see property prices hold, while rental prices should decrease. The Service sector is likely to show the greatest growth in the first six months of 2013.
The rural property market in the region is expected to hold up, with property prices and weekly rentals remaining at current levels.
The Lifestyle sector of the Adelaide Hills/Mount Lofty Ranges rural property market represents the greatest growth sector in the first half of the year. Click here to view the First National Real Estate 2013 Property Market Outlook