A report released by BIS Shrapnel looking at Residential Property Prospects claims that Australian property market conditions are beginning to improve, and that housing could see turnaround within two to three years. Howev er improvement rates will be different across different states and areas, with NSW, WA, Queensland and the Northern Territory recovering while non-resourece states may continue to stay are lower price levels.

Victoria, SA, Tasmania and the ACT may see property prices continue to move south. These states had benefited from significant growth in Construction and property development before GFC and now faced excess supply in conjunction with low demand due to economic problems abroad.

BIS Shrapnel expects to see market recovery gain traction through 2013 as continued growth in resource investment spending eventually flows through to other sectors of the economy. With Australian economic and employment outlook improving, purchasers are expected to stage a return to the market in greater numbers, translating to greater sales volumes and a pickup in price growth over the next 3 years.

Consequently lenders and Mortgage Brokers will do well to offer home loans to borrowers in the WEST and may find little interest in property finance in other states.

Categories: Property

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