Market confidence highest in Brisbane and Adelaide

By Staff Reporter

Australians are overwhelmingly optimistic about buying property in current market conditions, particularly in softer markets like Brisbane and Adelaide, a new survey has suggested.

According to the RP Data Nine Rewards market survey, around 76 per cent of all respondents believe now is a good time to buy.

In addition, half of respondents expect dwelling values to rise over the next six months, with only five per cent predicting a fall.

Twelve months ago, only 38 per cent of respondents believed values would climb in the next half year.

"Clearly, Australians remain positive about the direction of dwelling values," RP Data research director Tim Lawless said.

"However, most respondents who think values will rise over the coming six and 12 months have fairly measured expectations of value growth, with most suggesting values are likely to rise by less than five per cent over the coming year."

In markets where growth has been subdued in recent times, confidence was especially strong.

Around 90 per cent of respondents from Adelaide and 87 per cent from Brisbane believe now is a great time to be purchasing a property.

By contrast, the high-growth markets of Sydney and Melbourne saw a much weaker response, with only half of respondents showing enthusiasm for buying in current conditions.

RP Data research director Tim Lawless said fears of a property bubble may be depressing market sentiment in these cities.

"The ongoing debate about a housing market bubble is clearly an issue that has the potential to dampen housing market sentiment, particularly in markets such as Sydney and Melbourne, where home values tend to be higher," Mr Lawless said.

Over 64 per cent of residents in these cities believe the market may be vulnerable to a significant correction in values.

However, the outlook is not all negative for Sydney. Around 68.9 per cent of respondents believe now is a good time to sell in the city.

Melbourne also shows some confidence in the current sales market, with 56.9 per cent of residents saying the market is currently positive for vendors.

By comparison, only 44.3 per cent of Brisbane residents and 40.6 per cent of respondents in Adelaide believe it is currently a good time to sell.

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