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The latest Quarterly Australian Residential Property Survey from the National Australia Bank (NAB) showed a 1.3% rise in national house prices in the third quarter of this year, with growth recorded in all states but Western Australia.
New South Wales saw the strongest growth in home values at 1.9%, followed by Victoria with 1.5%. Queensland also performed impressively, while Western Australia emerged as the only state to score a decline.
Next year, NAB expects the market to see a 3.3% improvement, before surging further by 4.5% in 2015. All states are forecast to enjoy strong growth, with New South Wales continuing to beat average national growth.
NAB’s Residential Property Index also improved strongly, driven by the increase in house values. The index advanced by 17 points to 32 points in the quarter, achieving its second highest result since the survey started.
The report also points to a rise in demand for all types of new and existing property, particularly in the new property market from owner occupiers. First-home buyers, however, pulled out of the market in the third quarter, and demand from local investors was also modest, except in New South Wales.
Up-graders were again the most active on the established property market, where demand improved in all market segments, proving to be the most solid for houses and inner-city low rise flats.
Capital city house values are expected to grow by 3.5% through to September 2014, and then by 3% through to September 2015, NAB also said.
