Summary of a presentation by BIS Shrapnel March 2013
Outlook for the Housing Market
Prices look set to rise 15% over the next three years – in NSW.
Housing market not uniform over Australia. WA, QLD and NSW expected to grow well. With Vic, SA and Tas underperforming.
NSW prices helped along the following factors;
• Increased population growth from strong increases in net migration
• General under supply of property due to lower levels of construction in past decade
• Lower interest rates
• Increased rental yields
• Lower rent vacancy factors
• Improved confidence in the economy
General Economic Outlook
Interest rates expected to fall further in coming months
Equity markets growth should support growth in household consumption
Dwelling building should recover in NSW due to a shortage of dwelling construction and lower interest rates.
Improved global growth prospects
However, mining investment expected to peak this year and remove a strong driver of growth.
Residential Building commencements in NSW expected to rise by 22% in 2014 and a further 16% in 2015.