Three-pronged agenda is set

Next year will see continued focus on interest rates, supply and energy. THIS year has been a remarkable one for real estate and in 2010 a number of issues will be high on the agenda.–The improved confidence in the economy during the past few months has revealed the underlying housing issue, which is the failure to provide enough housing for our growing population. The result of this failure is two-fold: rapidly increasing property prices and continually low rental vacancy rates. The solution is simple €” more houses €” but this appears to be drastically difficult to achieve.–There have been three interest rate increases in three consecutive months, a step as unprecedented as the rapid rate reductions by the Reserve Bank a year ago. According to the Real Estate Institute of Australia, the most significant impact on affordability has been interest rates. Twelve months ago the average monthly loan repayment was $2161 and in the September quarter this year it was $1684. More rate increases next year will have an impact on the property market.–The attention of decision-makers on the issue of combating climate change is shifting towards established residential property.During the past few years, standards have been set for the construction of new houses and offices and next year will see the focus shift for the first time to established residential property. This will occur primarily through the nationwide requirement for owners to disclose the energy performance of their dwellings when renting or selling from May 2011.