Analyst’s report forecasts property recovery

Analyst’s report forecasts property recovery

Posted on Thursday, February 07 2013 at 10:42 AM

The property market has strong fundamentals in place for an upswing, according to PRDnationwide’s first Quarterly Economic and Property Report for 2013.

company’s initial quarterly release for the year indicates confidence is rising
in the property sector with its Time to Buy a Dwelling Index showing a significant
increase in New South Wales and Victoria and a marginal increase in Queensland.

index measures changes in consumer sentiment regarding whether it’s a good time
to buy a dwelling.

Maskrey, national research manager for PRDnationwide, says the index is
reversing a long-held trend.

“Over the past decade or so that
index has been falling.”

having only a marginal increase, Queensland has the highest overall index score
indicating it’s the state where most buyers believe the time is right for an

are more qualitative reasons for Queensland property buyers to be bullish too,
according to Maskrey.

“I was talking
to some colleagues from Sydney and Melbourne. They believe the recovery is
going to be led by southeast Queensland because it’s more affordable compared
to other states.”

report is optimistic about a stronger second half of the year in 2013 for the Australian
economy as a whole.

with the resurgence in China and a slowly stabilising US, if Australian
unemployment can remain in check for 2013 and interest rates remain low, then
rebuilding on Australia’s fragile confidence can continue,” it says.

“I think it’ll
be gradual. It won’t be an overnight snapshot back to where we were over the boom
times,” Maskrey says.

Tom Edwards,
regional director for CBRE Residential Valuations agrees that property prices
in 2013 are set to be stronger.

“We are seeing
a bit more confidence in the market. I think January 2013 has started off with more
confidence than January 2012. We are seeing a bit more activity out there,” he

Edwards believes
interest rate falls are having an impact.

“I think that
the compounding effect of the interest rate reductions have had an effect.
There’s still talk about another one. I do think that (the market) is finally
starting to see confidence because of the interest rate levels being very, very

Although the
future is difficult to predict, all the current signals point towards a better
market, says Edwards.

“I think we can
only go by what’s happening at the moment and there is more confidence out
there early in the year so I hope that’s going to get some legs.”

Monthly Wrap for January 2013 goes further.

“One thing is certain, the current buying conditions in
property have never been as favourable as they are now, with low interest
rates, more affordable prices and plenty of stock to choose from in most

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