Investors set to lead market recovery

Investors set to lead market recovery

15 February 2013 by Staff Reporter 0 comments

Staff Reporter

A property valuation group has claimed that prices in 2013 will rise after a ‘slow and modest’ recovery.

Greville Pabst, CEO of the WBP Property Group, said the recovery will be below long-term growth averages for the nation.

“Property is far more complex today than it was in the past and no longer is it an investment vehicle for uneducated investors," he said.

“Not all property will perform in the same way in 2013 and buyers need to be informed and aware of this when buying to ensure they understand the capital growth drivers that make a good investment property.”

According to WBP, signs point to growth potential for a number of residential sectors as a result of a positive shift in market sentiment in late 2012.

“There are signs of a positive shift for property values, the likes of which we haven’t seen since 2010, including more bidders at auctions and more interest at open for inspections.

“[There is] anecdotal evidence of much better results being obtained at private sales, second-ring areas and outer suburbs reporting strong selling results. The market had a strong spring and experience tells me that a good result in spring leads to a strong summer-autumn.”

Property investors were among the most active buyers in 2012, but while this buyer segment is expected to remain active this year, WBP claims they will face rising competition from increasingly active owner-occupiers looking to upgrade or downsize following improved market conditions.

“It should be noted that banks and lending institutions are doing everything they can to present attractive lending options. When the banks are lending at low interest rates the buyers will return to the market,” Mr Pabst said.

According to WBP, despite improved conditions buyers should exercise caution when engaging in a purchase.

“Property has become an increasingly complex investment vehicle and is no longer a simple prospect for the novice investor,” Mr Pabst concluded.

Staff Reporter

A property valuation group has claimed that prices in 2013 will rise after a ‘slow and modest’ recovery.

Greville Pabst, CEO of the WBP Property Group, said the recovery will be below long-term growth averages for the nation.

“Property is far more complex today than it was in the past and no longer is it an investment vehicle for uneducated investors," he said.

“Not all property will perform in the same way in 2013 and buyers need to be informed and aware of this when buying to ensure they understand the capital growth drivers that make a good investment property.”

According to WBP, signs point to growth potential for a number of residential sectors as a result of a positive shift in market sentiment in late 2012.

“There are signs of a positive shift for property values, the likes of which we haven’t seen since 2010, including more bidders at auctions and more interest at open for inspections.

“[There is] anecdotal evidence of much better results being obtained at private sales, second-ring areas and outer suburbs reporting strong selling results. The market had a strong spring and experience tells me that a good result in spring leads to a strong summer-autumn.”

Property investors were among the most active buyers in 2012, but while this buyer segment is expected to remain active this year, WBP claims they will face rising competition from increasingly active owner-occupiers looking to upgrade or downsize following improved market conditions.

“It should be noted that banks and lending institutions are doing everything they can to present attractive lending options. When the banks are lending at low interest rates the buyers will return to the market,” Mr Pabst said.

According to WBP, despite improved conditions buyers should exercise caution when engaging in a purchase.

“Property has become an increasingly complex investment vehicle and is no longer a simple prospect for the novice investor,” Mr Pabst concluded.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?