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.