Saturday, December 26, 2009

Matusik Turns Bear!

RELIEVED property sector experts are optimistic about future growth for the industry after residential values seem to have dodged a bullet in the fallout of the global financial crisis.

Experts across the country are predicting capital increases of about 5 per cent. Some are warning of problems associated with an undersupply of property.

But Brisbane-based property researcher Michael Matusik has gone against popular opinion to suggest that developers should be cautious. "I have been banging on about an undersupply for close to 10 years, but circumstances have changed in the past six months to suggest that maybe we are, firstly, already building enough dwellings to cater for demand, and that we might even be heading for an overbuild if current trends continue," Mr Matusik said.

He said increased foreign migration hadn't resulted in as big as demand as expected due in part to large household arrangements.

RPData researcher Cameron Kusher is more bullish than many commentators and predicts 7 to 8 per cent growth in Brisbane next year. He cited availability of finance as the wildcard that could affect how many investors get into the market. He predicted many would look at older stock that needed renovating.

Source: Courier Mail

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