An economic and property snapshot produced by PRDnationwide reveals a healthy property market, increased business confidence, and continued population growth.
Figures published in PRDnationwide’s Quarterly Economic & Property Report show business confidence hit a sixteen year high.
According to the report’s author, Aaron Maskrey, consumer sentiment grew 10 per cent in Queensland, 2.6 per cent in South Australia and 0.3 per cent in New South Wales throughout March.
“The successive rises in the cash rate has lead consumers to act conservatively – consumers are now more likely to use savings to reduce their debt, rather than to spend,” he said.
The report found that numbers of new dwellings increased in the fourth quarter by 13.8 per cent - or 5,096 new homes across Australia.
“Commencements have been increasing since the March 2009 quarter, which brings a much needed boost to the property industry,” Mr Maskrey said.
“However early figures coming through from the ABS for January have building approvals softening for the first time in five months. Possibly a result of the federal stimulus package being wound back at the end of 2009,” he said.
The median house price in Australia climbed on average by 12.76 per cent – the highest level in 2009.
Darwin has once again recorded the biggest increase of 19.7 per cent while Melbourne prices rose 19.3 per cent.
“Price growth will continue in the Victorian capital, with properties located within 10-15 kilometres likely to be the best prospects for growth,” said Mr Maskrey.
Figures show business confidence of 17.7 index points has not been this high since the end of 1994.
“This is a dramatic increase from the previous year when sentiment was at one of its all time lows of – 30.5 index points,” said Mr Maskrey.