Consumer confidence drives property recovery
Improving consumer sentiment and an increase of property investment will support a recovery in the real estate sector.
According to recent figures released by Australian Property Monitors (APM), house prices across the nation lifted 1.9 per cent in the December quarter - finishing the year with a 2.1 increase in property values.
Andrew Wilson of APM said the latest results also showed that all Australian capital cities recorded a rise in median house prices in the three months to December for the first time since 2010 - a trend which further points to an upturn in the real estate industry.
"Of the major capitals, the top house price performers over the quarter were Perth up 2.5 per cent, Melbourne up 2.4 per cent and Sydney up 2.0 per cent," Mr Wilson added, Real Estate Business reports.
"Although housing market performance remains patchy and mixed both between capital cities and within capital city submarkets, buyer activity and confidence is clearly on the rise."
The APM figure support data released from the Australian Bureau of Statistics this month, which show prices rose 1.6 per cent in the December 2012 quarter - the strongest quarterly growth in almost three years.
Housing Industry Association economist Geordan Murray said the recent figures indicate that low interest rates are having an effect on homebuyers across the nation.