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There’s still growth in the property market | NAB survey - featured image
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There’s still growth in the property market | NAB survey

What's ahead for property in 2018?

Well... slower growth for one thing, but there will still be growth according to forecasts by NAB.  property market

Housing market sentiment (measured by the NAB Residential Property Index) bounced in Q3, following a sharp fall in Q2.

Sentiment improved in all states (except NSW), led by a very strong read in Victoria.

Property experts on average are pointing to stronger house price growth in all states in the next 1-2 years (except in SA/NT), with the biggest gains forecast for Victoria and Queensland.

Expectations for rental growth have also risen to their highest level in nearly 4 years, with Victoria leading the way.

First home buyers continue emerging as key buyers in new and established housing markets, but tighter restrictions on foreign buyers appear to be biting with their market share of new property sales falling to a 5-year low (around 1 in 10).

House prices are forecast to rise 3.4% in 2018 (previously forecast at 4.3%), easing to 2.5% in 2019.

Unit prices are forecast to rise 0.5% in 2018 (previously -0.3%), with a modest fall expected in 2019 .

NABHousing

NABUnits

Screenshot 2017 10 16 17.03.38The NAB commented:  

“We have long anticipated a definitive shift to more moderate market conditions, brought about by a combination of factors (which vary across markets) including deteriorating affordability, rising supply (primarily apartments) and tighter credit conditions following the macro prudential response to financial stability concerns (mainly targeted at investors). 

“While we are yet to see clear evidence of that, we continue to hold this view - although recent price trends suggest the timing of the shift may vary somewhat across markets. Additionally, we anticipate an even higher degree of uncertainty around the price outlook than usual given the relatively unchartered waters of macro prudential intervention,”

About Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au
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