The property market is going to be ‘red hot’ in 2010, research analysts have claimed.
ICAP economist Adam Carr said the latest spike in building approvals surpassed all median market expectations, which was a good sign for the year ahead.
Earlier this week, the Australian Bureau of Statistics announced that building approvals had risen by 5.9 per cent to 13, 724 units in November.
"I know this is November 2009 data, but we have all the conditions in place to see a very strong housing market - low interest rates, we saw 100,000 jobs created in the last few months, and a housing shortage,” Mr Carr said.
“I believe 2010 is going to be red hot.”
JP Morgan economist Helen Kevans agreed and said she expected strong property results in 2010 despite the Reserve Bank’s recent rate rises and the scaling back of the federal government’s first home buyer’s grant.
Speaking to AAP, Ms Evans said demand for property would continue, however, a rate rise in February might dampen demand intermittently.
"We'll see some strength in approvals for the time being, but we'll have some weakness going into 2010 as the RBA continues to hike rates," she said.
The Reserve Bank is set to meet again on February 2.