Property prices plateau

The Peninsula property market, which was travelling so strongly 12 months ago with leaps in value, has seen prices plateau and in some cases slightly drop.

However, director of Wilson's Real Estate in Woy Woy, Mr Jim Martin, said there were still plenty of transactions taking place, notably at the lower end of the market.

He said the reasons for the lower end buoyancy was probably due to the Federal Government's $7000 first home buyers assistance grant.

"I think quite a few first home buyers held off until July so they could claim."

Mr Martin said there was no guarantee the grant would be long-term and may be unavailable in 12 months time.

"The top end of the market is a little quieter at the moment and the recent increases in interest rates may have curbed investor interest," Mr Martin said.

He said other factors possibly stopping investors were the shakeout from the Ralph report affecting negative gearing and capital gains tax and the GST.

"Some commercial operators are concerned about the Ettalong Resort and Fast Ferry too," he said.

Mr Martin said the peak of the market was about four months ago and it would stay flat until the end of the year.

However, Mr Martin said the Peninsula was still a good place to invest in property.

"All the available land is taken, which is ideal for investors," he said.

"People who buy here will be rewarded in the long run."

Mr Martin also said local agents prefer steady growth rather than fast but unsteady growth, and if real estate was going well, then associated businesses such as trades also did well.

Carl Spears, August 15