ANZ Bank has forecast that the property market is in a good position for growth in 2013, with an increase in migration leading to a housing shortage.
According to ANZ's Economic and Property Update February, the Australian economy and property market are both ‘well placed’.
According to the report, despite overall global growth slowing, Asian markets are still performing well enough to reduce risk, and keep market sentiment afloat.
The bank also noted that Australia is experiencing “below trend growth”, yet is performing significantly better than the rest of the world.
Net-overseas migration has also rebounded strongly, creating a "housing shortage driven by rapid acceleration in migration and population growth".
Following current trends, the report claims the housing shortage will accelerate sharply in the years ahead if population growth and housing demand isn’t met.
ANZ identified NSW as the worst affected state, with Queensland and Western Australia to experience an unprecedented shortage in the next few years.
ANZ's report largely mirrors the outlook of RP Data’s research director Tim Lawless, who told Real Estate Business' sister title, The Adviser, that he expects to see full recovery in house prices this year after finding the floor in the last quarter of 2012.
Statistics from RP Data show property prices fell 1.2 per cent across the nation in December 2012.
Thankfully, this downwards trend was reversed in January, with data showing there was a 1.2 per cent increase in house prices in January – effectively negating the December drop.
“This data is a positive sign for the Australian property market,” Mr Lawless said.
“I think it is safe to say the property market is now on the path to recovery and, by the end of 2013, I think we should start to see values return to their 2010 highs."