According the Alan Oster, NAB chief economist, the number of people that plan to invest in Australia’s property market this year is surprisingly high. Figures show that numbers of interest have risen from 24% in December to 33% in March.
The increase is largely due to improvement in rental yields and changes that allow self-managed super funds to purchase residential property developments. This is good news for the property market, but the National Australia Bank survey shows that credit access continues to be a problem for developers.
Property price growth is expected to grow this year at about 0.6 percent and rental prices are anticipated to rise. Some in Australia are in favor of a “buyers strike” until the prices strengthen, but in exchange for the wait, they will have to pay higher rents.
Experts predict that rents will increase about 3.5 percent within the next year, and 5.2 percent by March 2013. WA is expected to see the biggest gain (4.6%) and SA/NT (2.9%) and Queensland (2.5%) are expected to experience the weakest gain.
Western Australia is expected to lead the way regarding house prices, with a 1.1 percent rise over the next year. New South Wales and the Australian Capital Territory are expected to see increases as well at 0.9 percent.
A recent survey has found that access to credit is now beginning to be more of a hindrance to purchasing properties over the interest rates. Regardless, Australia’s property experts agree that the property market will slowly see improvement this year.
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