Strong investor activity is expected to return before the year end, with the market promising attractive rental yields and flat property prices.
According to First National Real Estate’s mid-year market update, which surveys agents across its 450 plus offices, 2011 is set to become the year of the investor, with conditions prime for their return.
“The market is continuing to slow which is producing excellent opportunities for investors who should be taking advantage of low vacancy rates, strong returns, increased upgrader activity and easing bank lending criteria conditions,” First National CEO Ray Ellis said.
“Investor activity is expected to increase across the board, with all member survey respondents saying they anticipated growth in this segment.”
First National Real Estate members across the country were overwhelmingly in agreement that house prices had steadied or fallen.
“Around 32 per cent of our members surveyed said house prices would trend downwards, while 50.9 said they would be flat,” Mr Ellis said.
“Across the board, any movements in house prices are expected to be within 10 per cent, but the majority of survey respondents anticipate them to be less than 5 per cent.”
Price movements for Apartment/strata property prices are also expected, in the main, to be below 5 per cent.
For the rental market, members’ surveyed overwhelmingly expect weekly rents to increase while vacancy rates will lower or remain flat.