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Outlook for residential property strong
September 17, 2010 - 1:30PM
The outlook for Australian residential property is strong as signs emerge that home loan applications are on the rise, analysts say.
While real estate agents and mortgage brokers report a slowdown in demand for homes, industry bodies say the median national house price rose by more than 3 per cent in the June quarter.
CommSec economist Savanth Sebastian said a recent slowdown in demand for residential property meant investors were now able to pick and choose.
"The fundamentals for property are still very strong," Mr Sebastian said.
"We've still got very strong population growth, we have been underbuilding and it is likely that with some certainty around interest rates, potential investors and home buyers will move back into the market place."
However, he said any strengthening in the housing sector would be "more sedate".
"I don't see it surging back as it did with the stimulus, rather it would probably be a much more subdued recovery."
September 17, 2010 - 1:30PM
The outlook for Australian residential property is strong as signs emerge that home loan applications are on the rise, analysts say.
While real estate agents and mortgage brokers report a slowdown in demand for homes, industry bodies say the median national house price rose by more than 3 per cent in the June quarter.
CommSec economist Savanth Sebastian said a recent slowdown in demand for residential property meant investors were now able to pick and choose.
"The fundamentals for property are still very strong," Mr Sebastian said.
"We've still got very strong population growth, we have been underbuilding and it is likely that with some certainty around interest rates, potential investors and home buyers will move back into the market place."
However, he said any strengthening in the housing sector would be "more sedate".
"I don't see it surging back as it did with the stimulus, rather it would probably be a much more subdued recovery."
Recovery from what? A world-class credit-fuelled speculative bubble that has not burst?
