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Staff Reporter
The property market has been tipped for an upswing in the New Year on the back of stronger domestic economic performance.
Speaking to Real Estate Business, Australian Property Monitors senior economist Andrew Wilson said the property market should undergo a "modest recovery" in 2012, resulting in greater lending and borrowing activity.
"Our strong economy will help our property market enter a modest recovery," he said.
"OECD is reflecting 4 per cent growth over the year, which is above trend and very good especially when compared to other countries around the globe."
On the back of this strong growth, Mr Wilson said he expects Australians to start spending again.
"They will definitely think about spending. They have been saving like crazy for the past 18 months and they have, in some instances, forgotten how to spend. But, I think confidence will return and, as it does, so will spending habits."
"Moreover, the skills shortage in key areas will drive immigration, which will ultimately drive new buyers into the market – helping 2012 to become the year of recovery."
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