THE residential property market will continue to strengthen despite recent volatility in the economy, according to the Australian Property Institute.
The API’s 25th Australian Property Directions Survey shows that 66% of respondents see a beneficial impact for residential property in the next 12 months, from the continued movement in prices and volatility on the stock market.
The respondents which include valuers, fund managers, property analysts and property financiers believe that recent movement in prices and volatility on the stock market has not dampened sentiment for resident property.
“This confidence in residential property is a resounding indication of the strength of the residential market in Australia at the moment, despite recent economic upheavals,” API NSW president Robert Hecek.
Meanwhile respondents were most confident in the Melbourne residential market, which they said has entered into an upswing cycle in 2010 and will stay that way over the next two years. They believed Sydney is lagging behind and will rebound in the next 12 to 24 months, whilst Brisbane will be third in the race.
A majority of respondents, 79%, also believed interest rates will be higher in the next 12 months, with a similar outlook for the next three years.
Despite this, they still forecast residential property continuing on an upswing.
Hacek said the resilience of the residential property market is due to various factors.
“The Government’s stimulus package, combined with historical low interest rates and strong demand for housing has helped the residential sector remain durable. Good employment figures and a low unemployment rate have also assisted demand in the residential market,” he concluded.
Australian Property Journal
