The close of 2012 saw a positive shift in the investment market, one major group has noted.
“December [saw] a strengthening investment market.” Brian White, chairman of Ray White Group said in his latest White Paper report.
“It appears that the long predicted move of people coming back into investment property, as the difference between property yields and interest rates continues to widen, is starting to gather momentum.
However he noted home loan approvals were down.
“Home loan approvals for the month of December were four per cent down on last year but the results for the year to date reflect 11 per cent growth for our loan market,” he said.
He encouraged positivity for 2013 in his monthly newsletter, declaring strong results in December for Ray White.
“Ray White’s figures in December were right up with the results from the previous three to four months of $2.4 billion,” he said.
Mr White also rejected recent figures, which showed that average house prices in Australia have fallen in 2012.
“It’s so dangerous talking averages,” he cautioned. “We believe the Australian market has significantly firmed for the mid range. By significant, we mean something around five per cent. It’s just that the numbers of sales of expensive properties did not increase. Thus, in our view its impact on averages becomes misleading.”
He said the group would add five new offices in the next few weeks, and that the Gold Coast market in particular was improving.