Australian house prices are expected to climb moderately over the next 12 months, new data has revealed.
According to NAB’s Residential Property Survey, nationwide prices are tipped to increase by just 0.6 per cent over the next year led by WA, which is expected to enjoy a 1.1 per cent lift in property prices.
Looking further ahead, house prices are expected to rise by 2.6 per cent over the next two years.
But while the future looks bright for buyers, renters can expect to endure more heartache, with the average rent forecasted to rise by 3.5 per cent by March 2012 and 5.2 per cent by 2013.
The biggest gains in this period are forecast for Western Australia and New South Wales.
NAB’s chief economist Alan Oster said the bank had been forced to revise its rental expectations since its last survey.
“In December, nationwide rents were tipped to rise by 2.8 per cent over the next 12 months. However, the latest survey data is pointing to an increase of 3.5 per cent in the next year, with rental expectations stronger in all states except Victoria and Tasmania,” he said.