The quarterly Australian residential property survey by National Australia Bank indicated housing market sentiment lifted slightly in Q1 2014 as sentiment improved in SA/NT and NSW, but softened in Victoria and WA. The outlook for house prices strengthened in all states except Victoria, with Queensland showing the biggest gains in the next 1-2 years. A big pick up in foreign buying activity was noted in the market for new property (especially in Queensland) and for established housing (especially in NSW). In terms of total demand, foreign buyers now account for just over 1 in 7 new properties and around 1 in 10 established homes.
The outlook for house prices over the next year was stronger in all states, except Victoria. Price growth tipped to be fastest in Queensland (3.5%) and NSW (3.3%) and slowest in Victoria (2.2%) and SA/NT (2.2%). Queensland (4.4%) to lead the country for capital gains in 2 years time, with expectations pared back in Victoria (2.4%), where expectations are now weakest overall.
For the full report NAB Residential Property Survey Q1 2014