With 80 per cent of property buyers believing now is a good time to be purchasing, values and rents are likely to see an increase in areas where confidence is strong.
RP Data’s survey of housing market sentiment in May 2013 noted this upward shift in consumer expectations for housing market conditions and also pointed to a majority of respondents (55 per cent) expecting rental rates to rise over the next half year.
Consumer sentiment and increasing rents should widely attract investors; however, the growth is expected to vary.
RP Data’s national research director, Tim Lawless, noted that 41 per cent of responses expected value rises over the next six months, while 52 per cent expected the market to remain steady. This overall number may be skewed due to subdued conditions in some market expectations.
“Based on the survey results, we’ve seen distinct differences from region to region where, as an example, 59 per cent of respondents in Perth expected values to rise over the next half year,” he said.
“In contrast, survey participants in Tasmania delivered a much more sedate reaction, with no local respondents expecting values to rise over the next six months.”
The ACT saw the largest expectation of growth from overall national responses, with 70 per cent expecting rises over the next 12 months, closely followed by Perth at 68 per cent.
Smart Investment Property, August 2013 issue