Research carried out by the ANZ and Property Council of Australia reveals some good news for real estate market players. It appears that positive sentiment in this niche is soaring upwards currently touching an 18 month high. With a score of 100 being considered neutral, the index’s current 124 level indicates that buyers are very confident about the future of real estate in the country.
Low Interest Rate Climate is a Key Contributor
The fact that interest rates are remaining low for now is a key contributor to the positive sentiment prevailing in this market. In fact, in recent times, many analysts have urged buyers to move into property deals to take advantage of the low interest fixed loans that some top rated loan providers are offering. The general belief is that this low interest environment may not last very long especially as the property market has started to show some significant recovery in many locations across Australia. In particular, analysts are advising that buyers opt for fixed rate loans to lock in the current low rate for the duration of their loan and insulate themselves against future interest rate gains.
Return of Confidence is Evident
Most of the country’s key cities have reported a return of interest by buyers in properties in the middle and low end categories. While high end properties are yet to gain momentum, there is no doubt that even among these, the most attractive options are enjoying shorter and shorter ‘on- the market’ times. Units and apartments are among the most popular options with smaller homes attracting significant attention as well. It appears that buyers are mainly concentrating on properties that give them the many advantages of living in an owned home without spending excessively on intangible amenities that may not be translated into cash at resale.
Pockets where Interest is Highest
Not all of Australia is witnessing this steady return of confidence but it is quite accurate to say that most key locations are garnering some positive sentiment. In particular, the New South Wales, Western Australia and Queensland areas appear to be the most popular property buying destinations for buyers. Of these NSW has perhaps enjoyed the biggest lift in sentiment, clearly showing why the real estate market is buzzing here right now. Western Australia is another key area whether buyer activity is inching up slowly but surely. It is expected that residential properties will lead from the front in this market.