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Staff Reporter
The Australian property market is expected to make a modest recovery in 2012, according to RP Data's Cameron Kusher.
While Mr Kusher said the national market would continue to be characterised by soft conditions, 2012 will be better than 2011.
"Consumers are well and truly acting cautiously, saving at around the highest levels since the mid 1980's," Mr Kusher said.
"Credit and debit card statistics also show that consumers are showing a preference for using their own money rather than the banks. Growth in housing credit has been benign over the past year and has fallen when you remove refinances. The availability of housing credit seems unlikely to improve significantly over the coming year given the European Debt Crisis and ongoing economic woes in the United States.
"Lower interest rates are likely to result in an improvement in sales activity however; we don't believe values will start showing significant growth. As always the performance will be varied across capital city and regional markets. Melbourne, Adelaide and Hobart are likely to be the weakest capital city markets whereas Sydney, Brisbane, Perth and Canberra are likely to be relatively better performers (albeit with limited if any growth in values).
"Overall the market is likely to be a little stronger than it was in 2011."
Mr Kusher said property price growth will be limited with values potentially falling further in certain areas.
"In those areas where values do increase they are likely to grow at a rate below inflation," he said.
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