Sydney and Perth will be the property market’s standard bearers this year, with investors and first home buyers pushing up each city’s real estate values by up to 5%, it has been claimed.
These are the predictions of Raine & Horne, who also expect values in Brisbane to stabilise for the first time in four years.
Commenting on the Sydney market, Raine & Horne CEO Angus Raine predicts that the $400-600,000 price bracket will lead the way, “with investors re-entering the market, replacing the expected shortfall of first home buyers due to the end of the stamp duty concessions on existing homes."
"Price, price, price will drive the buying decisions of those owner-occupiers and investors considering homes in Sydney below $650,000 next year,” he added.
He tips traditional apartment markets that have plenty of competition from both first homebuyers and investors to show form this year, singling out Eastwood, Ashfield/Burwood, Hurstville and Dee Why.
Inner ring suburbs, such as Bondi, Newtown and Neutral Bay, will also see increased sales activity from the second quarter of 2012 onwards, he adds, while sea changers will fuel growth in some regional areas.
"Baby boomers will look to regional centres that not only have excellent health and lifestyle facilities, but also to towns such as Tamworth, Orange and Port Macquarie, which have airports that make it easier for friends and families to visit," said Raine.
In Perth, Raine & Horne operations manager Sean Green nominates Cannington, Kenwick and Kelmscott as some of the suburbs to watch this year.
He adds that the North Perth market is expected to see increased investor activity, citing a recently renovated two-bedroom home in the suburb that attracted investor attention. The property brought in more than 40 enquiries during the last few weeks of 2011, says Green, with around 60% of these being from investors looking for healthy returns.
In Queensland, Green expects Brisbane’s inner ring suburbs, such as New Farm and Fairfield, to pique the interest of investors, and he tips the Noosa Hinterland to benefit from its ongoing appeal to tree changers.
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