THE Australian Property Institute said the downturn is over and declared the residential property market is on the way up
The API Property Directions Survey forecasts the recovery in the market will continue through to 2011.
The survey found the Sydney residential property market is clearly on the way up, and is forecast to grow for at least two years.
API NSW president Robert Hecek said a combination of low interest rates, government assistance and a shortage of supply in housing has made the Sydney market remarkably resilient during the economic slowdown.
But he warned the scope of growth may be tapered by the withdrawal of the First Home Owners Boost.
“The stimulus provided by the Commonwealth has been a real boost to the Sydney market, particularly in the sub $500,000 price range. The reduced incentives targeted at first home buyers were predicted to have a significant impact on the sub $500,000 market by 70% of the survey respondents
“Some respondents predicted a reduction in sales activity. Some possible price reductions within the sub $500,000 market as well as reduced building activity and lower sales in whitegoods and household items,” he added.
API Victorian division president Chris Plant only residential property in Sydney and Melbourne is viewed as having commenced the upswing of the property cycle with Brisbane residential property forecast to commence the upswing in 2010.
He added that Melbourne’s recovery will on par with Sydney, through 2010 and 2011.
Australian Property Journal
