Century 21, the largest real estate sales organisation in the Asia Pacific region, has started to observe improving market conditions that may indicate that the Australian property market (including the Port Douglas market) is moving into a new growth phase.
Residential land values in the Port Douglas region have generally stabilised following several years of decline.
The Valuer-General’s 2013 Property Market report on which rates movements are partly based was released yesterday. Values have fallen in the past 12 months where the supply of land is still greater than the demand such as Wonga Beach and Thornton Beach. Both suburbs have dropped by 9.6% in value.
But for the rest of the region, valuations have remained the same as those in 2012.
“Capital city dwelling values recorded growth in both January and February and, when this is combined with strong auction clearance rates, low interest rates and improving consumer sentiment – it is probable that the market is entering a new phase,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.
“While it is still too early to call a complete recovery, leading indicators look very positive for this year.”
A recent survey by RP Data and Nine Rewards showed that four out of five consumers believe that now is a good time to buy a home. Fifty-one per cent of those surveyed believed that house prices would rise over the next 12 months.
Interest rates remain at relative lows and transaction volumes have trended up since the start of 2012 which suggests that people are growing increasingly comfortable to buy or sell property.
“Century 21 believes that consumer sentiment is a key to fuelling a sustained growth period. With this in mind, it may pay to monitor the health of the Australian economy very closely this year,” concluded Charles Tarbey.
Phil Holloway – Principal of Century 21 Port Douglas Real Estate believes the resurgence of the tourism market in Tropical North Queensland will further enhance the recovery in the housing market in Port Douglas.