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NEWS - Property

Distressed property listings to grow in 2012

Published 5:29 AM, 31 Jan 2012 Last update 12:30 PM, 31 Jan 2012

By a staff reporter
The number of distressed properties put up for sale in 2012 is expected to climb, thanks to continuing struggles facing property owners and an entrenched hesitancy from potential buyers to jump into the market, according research from Colliers International.
Overall distressed real estate listings soared 30 per cent in Australia in 2011, versus 2010.
More than half of the 775 distressed properties advertised in 2011 were in Queensland.
“You have a significant number of properties not sold coming into the market in 2012, and there's more coming on,” listed property valuer LandMark White chief executive Brad Piltz told The Australian Financial Review.
A second source told the AFR that interest in buying distressed properties is slowly gaining pace as investors increasingly warm to the view that in some markets prices have bottomed out.
In a separate report, the AFR said that Australian housing prices are unlikely to experience a major slump in 2012, citing ANZ Research.
ANZ holds the view that market fundamentals remain supportive, although prices are likely to be flat or slightly negative.
“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” ANZ said, according to the AFR.

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1 Comment

Ben O'Grady wrote:
The best story Australia can hope for is a gradual decline in real estate prices even if rates are lowered as unemployment rises. The worst case is a serious and fast drop to make them more affordable to those still working. Did we avoid the world property crash or did we just postpone it? Time will soon tell us (Distressed property listings to grow in 2012, January 30).
31 Jan 2012 6:25 AM

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