Optimism can be expected for Queensland property over 2012, according to a leading economist.
There are some signs of improving conditions, despite persistent challengs, said Housing Industry Association (HIA) chief economist Harley Dale.
“The contemporary climate for housing in Queensland is very tough, but there are some signs of recovery emerging," said Mr Dale.
"Low confidence has been a killer in the Queensland market for a considerable time and it is important to focus on the positive signs emerging while still recognising the long road ahead."
Lower interest rates and a first home boost resulted in some small improvements in new housing figures in late 2011, said HIA executive director, Queensland, Warwick Temby.
"This year is about adding to that promising start through creating a policy environment where the obstacles to residential building are reduced so that a sustained recovery in confidence and activity can emerge," said Mr Temby.
A correction after the deterioration in prices seen over the last few years can take three to five years, Savills national head of research Tony Crabb told Smart Property Investment.
“We are in that correction period at the moment, we’re well into that three to five year period, it has certainly corrected and now stabilized,” Mr Crabb said.
“I don’t see it deteriorating much further from where it is now because I don’t see the fundamentals changing to the point where it ought to deteriorate.
“It has hit a base now. I would say that it has taken the hardest hit; the question now is: ‘What does the recovery look like?’”