Property activity is expected to increase in the first quarter of 2010, thanks to strong demand from investors and upgraders.
PRDnationwide research director Aaron Maskrey told Real Estate Business that he expects to see investors fuel the majority of activity in the property market throughout 2010.
“I don’t think we can expect to see the high level of capital gain experienced in 2007, but I can say that the pain experienced in 2008 is over. So, it is all good news from here,” he said.
Mr Maskrey recently completed a report detailing Brisbane’s property hotspots for 2010.
Based on their locality to public transport, the CBD, amenities and employment opportunities, Mr Maskrey said the Brisbane suburbs of Chermside, South Brisbane, Annerley, Fortitude Valley, Hemmant, Indooroopilly, Cannon Hill, Bracken Ridge, Woolloongabba and Red Hill constituted the top picks for investors.
“Moving in to 2010, investors will be enticed into the market as rents increase and a declining number of first home buyers enter the market,” he said.
PRDnationwide research anticipates investor finance commitments to increase to around 30 per cent of total finance commitments – which is to a level experienced prior to late 2008.
“A recent survey shows the majority of investors, 52 per cent, believe that Queensland is past the bottom of the property cycle which is good news indeed for 2010,” he said.
“We have already seen increasing levels of activity in most suburbs, and as activity increases, expect prices to follow suit.”