Real estate agents are upbeat about the outlook for the residential sector, the Australian Property Institute’s (API) latest survey has found.
According to the Australian Property Direction Survey, sentiment for the sector was up on the previous survey, conducted six months earlier, which reported a dramatic fall in sentiment.
The survey found that residential property was on the road to recovery and any upswing would continue to be felt well into 2011.
“Sydney and Melbourne are already seen as being on the upswing and will be joined by Brisbane in 2010,” API NSW president Richard Hecek said.
While the nation’s residential property market has remained resilient through the worst part of the downturn, thanks to low interest rates and government assistance, 70 per cent of the survey’s respondents said they expect the sub $500,000 category to suffer once the first home owners grant ends.
Moreover, the survey respondents felt as though any downturn in the sub $500,000 property sector would have an impact on the broader economy.