Property market set to improve in 2013
The residential property sector could be set to enjoy a recovery as the decline of house prices ...
The residential property sector could be set to enjoy a recovery as the decline of house prices slows and demand for real estate increases in 2013.
According to National Australia Bank's (NAB) latest Residential Property Index - which rose eight points in the December quarter - Western Australia is expected to see the biggest increase in capital gains in the next one to two years, followed by Queensland and Victoria.
The report also revealed that national house prices fell by 0.6 per cent during the quarter, however, this will be counteracted by a recovery of 0.9 per cent next year, with Western Australia leading the growth with 2.2 per cent.
And conditions will continue to improve throughout 2014, with national house prices tipped to lift 2.1 per cent by the end of the year, with the country's mining states experiencing the biggest recovery.
Demand for rental properties is also expected to increase this year - leading to a two per cent increase in national rents over the next 12 months, and 3.3 per cent in the next three years.
In the December quarter, rents rose 0.4 per cent nationally, underpinned by a 1.9 per cent increase in Western Australia.