Market analyst SQM Research say property values look set to strengthen with capital city asking prices continuing to rise as stock levels fall. SQM’s Asking Prices Index shows the capital city average asking price for houses across Australia is now $706,300 reflecting a 7.2 per cent increase and for units an average asking price of $459,300, which is a 2.3 per cent increase.
With national stock levels also dropping by 4.3 per cent, SQM Research’s Louis Christopher says he sees no evidence of any slowdown in the market. And the good news keeps coming with a big rise in confidence in the property and construction industries surging to record levels according to the Property Council/ANZ Property Industry Confidence Index. The index shows strong expectations for the housing market, with rising capital values and an increase in housing construction.
That rosy outlook is a win-win for homeowners and would-be buyers, according to Residential Development Council executive director Caryn Kakas who says homeowners will benefit from rising house prices, with increased financial stability for families and a growing nest egg for retirees. Finally – it would appear that buyers are willing to travel a little further for a bit more land. A survey of 2000 people conducted by Slater & Gordon’s Conveyancing Works found 48 per cent would buy a home beyond the traditional 10-kilometre radius of the city centre in order to gain land area.
The survey shows many people are willing to be flexible in their decision-making process and the majority of aspiring buyers aren’t ready to trade backyards for balconies.