Market/Finance News: Australia's property market moves from strength to strength

By the resi financial blog team, 28 April 2014

Australias property markert surges

The property market is expected to keep the economy afloat, as the latest Property Council/Australia and New Zealand Banking Group (ANZ)​ Survey has highlighted a solid momentum being maintained in the residential housing market during the first part of 2014. Improved affordability has been spurred on by buyer and vendor sentiment, which has translated into elevated auction clearance rates, home sales and solid price gains. 

Furthermore, the number of foreign investors moving into the Australian property market have increased across the country, with particular focus on Sydney and Melbourne. This could revolve around the potential for tourism investment, alongside the fact that these two cities are expected to see large degrees of economic growth and population increases in the coming years. 

Following this logic, property investment in these two cities could illustrate a great move to make heading into the future. As sustainable property price rises occur across the nation, this growth is supported by the low cash rate and subsequent low interest rates. Helping people secure their own properties and achieve their real estate goals will aid the overall growth of the nation's economy. 

The continued demand for new properties has helped raise the number of investors moving into the market, as well as aiding the stimulation of the housing construction industry. Furthermore, as the population continues to grow, an "unprecedented shortage of housing" will help to maintain pressure on increasing prices and rental yields - highlighting the potential benefits of smart property investment in the coming months. 

As housing approvals continue to rise, the popularity of medium to high density property cannot be ignored. This highlights and foreshadows the solid growth of house building activity heading into the rest of 2014. The impending growth of the nation's population provides the perfect backdrop for smart investments in the future. 

Categories: Home Loans, Property Investment