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Peter Kelaher: Hi, everyone. I'm Peter Kelaher from PK Property, Sydney's largest buyers'
agent. What I wanted to talk to you today was about a crystal ball that I'm bringing
out in this December period in regards to working out what my property predictions will
be for 2013. At the moment, the last four months in our company, we've seen the inquiry
pick up around about three or four times what it was in January in 2012. We're getting into
a situation now where interest rates have dropped over one percentage point, and it's
now getting to a stage where people are actually looking at how much they're paying for rent
compared to how much they can pay on a mortgage, and they're now getting into a situation where
they're thinking that it's time to move into the property market.
I can't disagree with them either. I think that we're in a situation where people that
are upgrading are really taking advantage of not losing too much on their property or
breaking even and then moving up into a higher property price range and getting quite a considerable
amount off the top there. We're still seeing a situation where the higher end of the market
is still fairly slow because there are not a lot of bonuses coming through the system,
and people are still hesitant in regards to paying high prices, thinking that the property
market will still drop.
I actually think that the property market in 2013 will be the ?rst year of strong capital
gains, moving on for probably the second and third year in regards to 2014, 2015, with
a bit of a slowdown in 2016. But we're definitely into that next cycle now, and I would encourage
everyone that's looking at maybe buying something in their [inaudible 02:05] to have a look
at the advantages that are now offered in there.
Also, people that are looking at upgrading or just wanting to change their lifestyle,
I think that's a fantastic moment to get in, right at the bottom of the market, so that
you can get this capital growth over the next couple of years.
Thanks for taking time today, and listening to me, in regards to our property
predictions for 2013.