Senior economist Jason Anderson told the AFR “2011 trends” were already apparent for residential sectors in regional areas of NSW, Queensland and Perth, where rental markets are tight. He said strong mining investment and increasing yields would help attract buyers and underpin activity.
“We’ve got a national outlook where the mining construction work should be ramping up in the next 12 months; that’s well anticipated but I think some of the areas where that’s yet to be factored in are the ones to be thinking about.”
He points to the Upper Hunter area of NSW, as well as the small town of Maitland, where the rental market is currently tight.
In Western Australia, Mr Anderson cites Kalgoorlie and Geraldton as regional areas to watch.
Australian Property Monitors expects Sydney’s median house value to surge to about $650,000 for the first time in 2011.
Senior economist Dr Andrew Wilson told the AFR “Sydney is and will remain the gold standard for housing investment in Australia. Constrained by geographical barriers, a chronic shortage of housing stock is unable to satisfy its growing populace.”
“As Australia’s commercial centre, the predicted increase in national activity through 2011 will quickly work its way into increased income, confidence and house buying capacity for Sydneysiders.”
Dr Wilson also expects Perth’s residential market to lead the other state capitals, citing numerous mining projects set to commence in 2011, high demand for labour and increasing wages and salaries.
Burgeoning company profits, boosting confidence, is also expected to drive Perth’s residential sector this year.