Australians are feeling more positive about property price growth, a national survey of first-home buyers, owner-occupiers and investors shows.
ME Bank’s quarterly Property Sentiment Report for the June quarter shows that the number of people expecting house prices to increase has risen across the country, with 38% expecting house prices to rise over the next 12 months (up from 32% in the March Quarter). Just 17% of people now expect property prices to fall in the next 12 months, a significant reduction from 28% of those surveyed in April. There continue to be large numbers of people who are uncertain which way prices will go. The survey showed that while overall sentiment was improving in Australia, some states were still holding negative outlooks when it came to property values, which reflects the reality that there are different market scenarios occurring in different parts of the nation. ME group executive customer banking Craig Ralston says the improved sentiment from buyers is unsurprising given the recent interest rate reductions, relaxation of lending criteria for mortgages and the certainty over negative gearing options since the federal election.