Subdued confidence in residential real estate could deliver enhanced returns
While the previous year has seen residential real estate prices drift lower due to reduced consumer confidence and economic uncertainty, a recent study has shown that this may provide increased opportunities throughout 2012.
The Property Council of Australia has released the finding of a survey conducted with ANZ that shows the potential effects to be had on the market in the medium term.
According to their findings, the long-running commentary on the "imminent collapse" of housing markets across the nation has "weighed on market confidence".
The researchers noted a correlation between negative residential news and measurable drops in property prices, but say that they remain positive about the prospects to be found over the rest of the year.
They say that a strong demand for labour and increases in combined household incomes will help to support property prices and may eventually see them return to a strong phase of growth.
"While we expect Australian house prices to ease further in the 12 months ahead, we maintain a cautiously optimistic medium term house price view supported by a robust economic outlook, low unemployment, flat to falling mortgage rates, improved affordability and a further tightening of the housing demand-supply balance," asserted the authors.
