Despite expectations of future interest rate hikes, confidence in the residential and commercial property markets has risen to a two-year high.
The confidence figures came from the latest property industry survey by ANZ and the Property Council of Australia and they confidence up in all states except Western Australia which is still recovering from the end of the construction phase of the mining boom.
In the index used in the survey, a score of 100 is considered neutral. The index rose 2 points to hit 130 for the quarter.
ANZ chief economist Richard Yetsenga told Australian Financial Review there was no sign of a peak in property in the survey results.
“Much of the improved outlook for the property market came from the residential segment,” he said.
Melbourne’s property prices rose 13.7 per cent in 2016 and the survey indicates that those in the industry expect growth to stick around for a while yet.
Chief executive of the Property Council of Australia Ken Morrison said the results meant the housing affordability issue in the country would remain a hot topic seeing as prices are expected to grow at the same time as interest rates are expected to rise.
“The political message from this is clearly that all governments need to stay focused on the housing affordability issue,” he told Australian Financial Review.
“We see in NSW a strong surge in confidence underpinned by expectations for economic growth, housing, forward work expectations as well as confidence in the government itself.”