‘vintage' year for oz property

Low prices of property in countries such as Australia have prompted many long-term property investors to believe 2009 will be a "vintage" year for making purchases...

Values of property in Australia are likely to drop due as a result of so-called 'fire sales' - brought about by landlords being unable to refinance loans and having to sell off their assets, Reuters reports.

And as a result, many buyers may be tempted to move into the market in anticipation of making a profit when the real estate sector recovers.

Robert Lie, Asia Managing Director for property investment firm Redevco, told the news source that "for investors with money, this is a once-in-a-lifetime period".

However, he also warned that for those starting out, it will be much more "difficult to raise money" in the current market.

Mr Lie's comments follow a similar statement from property analyst for Paterson Securities Jonathan Krista, who told Reuters recently that "2009 is going to be the year of trusts going private and assets being sold".

Source: Reuters