David Stanley Redfern

House prices are likely to finish the year up by about 7%, despite dire predictions of falls of up to 20% at the start of 2009.

The value of the average property fell by 19% from a peak of £186,044 in October 2007, to a trough of £147,746 in February this year, according to the Nationwide house price index.

Confidence returned, however, with the market bouncing back 8% to £162,764 in November as the expected flood of repossessions failed to materialise and buyer demand outstripped the supply of property coming on to the market.

Growth next year is forecast to be modest. The Royal Institution of Chartered Surveyors (Rics) predicted last week that house prices would rise 2% at best with early gains wiped out later in the year by sluggish economic growth and limited finance for first-time buyers.

Simon Rubinsohn, chief economist at Rics, said: “The imbalance between supply and demand will continue into the early part of the new year, resulting in some further house price gains. However, the combination of more available property and rising interest rates will gradually exert a greater influence.”

Assetz, the property group, is the most bullish of our forecasters, predicting that average prices will rise up to 5% because housebuilders will struggle to build more property and interest-rate rises are more likely to be modest than severe. read more

Not just a hit song by Martha and the Muffins, Echo Beach in South Australia is also likely to be a hit with property investors looking for excellent, and possibly spectacular, gains with minimal capital risk. DSR Asset Management Ltd has prime plots in Echo Beach, Beachport, Australia for sale, with a price tag starting from as low as the cost of a fitted kitchen.

The Australian property market is showing strength now. David Airey, president of the Real Estate Institute of Australia said last week

“I’ve been desperately trying not to call it but I think we’ve seen the bottom and we’re seeing investors coming back into the market”

Land traditionally appreciates faster than houses, and an independent analyst recently reported

“Based on experience and research we conservatively estimate that capital growth for this coastal property (Echo Beach) without planning permission would range from 10-15 percent per annum.”

However gains for investors in this innovative project could easily be far higher – and here’s why.

Enhanced planning is currently being sought by the developers of Echo Beach to build eco homes. The local council have indicated to them that they are

“…very supportive of development that is consistent with the natural environment and seeks to preserve natural vegetation, particularly in Coastal areas. The council are willing to work with you on this project to produce an outcome that best satisfies all parties involved.”

If enhanced planning permission is granted, as seems likely, investors could be looking at an additional 500-1,000% increase in asset value, again based on independent market estimates. You would be pushed to get this rate of return from investing in a fluke penny stock, yet here you have a realistic chance of a property ten-bagger from a secure investment in land.

Echo Beach is located in the picturesque seaside town of Beachport, on the world famous, fossil-rich Limestone Coast, just over an hour’s drive from Mount Gambier, the second-largest city in South Australia. Tens of thousands of tourists come every year to enjoy its relaxed atmosphere and stunning coastline and to bathe or walk on wide stretches of beach. The clear, sheltered waters of Rivoli Bay are perfect for all denominations of water sports.

DSR Asset Management Ltd are offering Echo Beach beachfront and direct ocean view land in this unique development of 65 acres, with plots from 500 sq m upwards, starting from £15,000 and rising to £30,000.

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Editor Notes

About DSR Asset Management Ltd

DSR Asset Management Ltd is an established leading overseas property specialist, working closely with developers in many countries to provide an exclusive turnkey service for the discerning investor.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com or call +44 (0) 115 871 4594

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