The residential property market sentiment climbed to a nation-wide high in the first quarter of 2017. According to the NAB Residential Property Survey – Q1 2017, the overall index rose from 16+ to 31+ points, sitting at its highest since Q1 2014. With predictions of further increases over the next two years, confidence in the residential sector is set to soar.
Released on Friday 7 April, the Quarterly Australian Residential Property Survey: Q1 2017 indicated an overall positive consensus. Amidst lingering industry concerns, the NAB appears confident the report accurately reflects promising market trends.
The report explains that steady gain in residential prices has warranted an adjustment to market performance expectations. Sydney and Melbourne, in particular, have lead the charge, seemingly unaffected by concerns of affordability and over supply.
While, it comes as no surprise that New South Wales is still leading from the front, significant gains have also been recorded in South Australia and Northern Territory. Queensland follows suit with modest improvement in the market.
Indeed, Queensland is tipped to see above average growth in housing price in the coming years; Brisbane and the Gold Coast in particular are noted to expect high growth over the next 12 months.
According to the NAB Group Chief Economist Alan Oster, “Expectations have been revised up in all states except Western Australia (unchanged), with Queensland and South Australia / Northern Territory expected to out-perform”. Predictions have been made for an average unit price increase of 6.8% and housing price of 7.2% by property experts across the major cities.
Mr Oster continues in saying; “The latest results paint a picture of a very resilient market despite ongoing concerns…”. This positive market sentiment is indicative of improved demand for new and established residences. The report anticipates continued improvement across all locations over the next 12 months. Specifically, property experts are commenting on “good” demand for houses and low rise apartments.
The positive inclination of the survey can only suggest a promising future for what is reported to be a booming property market. It is certainly a confidence boosting report for home owners, buyers and investors alike.
If you’d like to view the full Residential report, please click here.
