NAB’s residential property survey indicates house prices will rise faster than expected in 2016.
The new NAB survey shows properties in Victoria and Queensland are expected to provide the best capital returns over the next two years, as overall sentiment toward the housing market remains positive, despite some softening.
NAB chief economist Alan Oster says national average price forecasts for 2016 have been revised upwards from 1.5% to 5.1% in the NAB’s second quarter Residential Property Survey, while unit price forecasts were revised up to an average rise of 3.6% for 2016.
“It’s still a mixed picture across Australia, with house price expectations for the next 12 months holding up well in the eastern states whilst staying flat in SA/NT and continuing to fall sharply in WA,” Oster says.
“Our upwards revisions in price forecasts reflects the strength in prices to date – over the last six months, Sydney and Melbourne prices have increased by an annualised rate of nearly 19% and 12% respectively.”
Confidence has improved with the national index rising to +29 next year and +36 in two years‘ time.