Perth tipped for fastest growth
Perth leapfrogged Gladstone as the most popular city for capital growth over the coming 12 months, as nominated by property experts in an inaugural quarterly survey.
Around 300 panelists, principally estate agents, property owners and investors, took part in National Australia Bank’s March 2013 Residential Property Survey.
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Property experts predict capital city prices to grow 2.2 per cent over the coming 12 months, where Western Australia is expected to lead the pack with a rise of 3.8 per cent.
Meanwhile, Victoria and New South Wales are also predicted to climb 2.4 per cent and 2.2 per cent respectively.
Martin Bregozzo, senior property manager and property economist at BIS Shrapnel, told Smart Property Investment that housing shortgage and increasing population are among numerous strong drivers underpinning Perth's market.
BIS Shrapnel forecasts the stock deficiency for WA to grow from an estimated 14,100 dwellings in 2012 to 25,000 in 2013 before peaking at 34,000 dwellings in 2015, he said, where Perth accounts for 62 per cent of the deficiency.
Compared to Sydney and Melbourne, Perth also has a lower - but rising - entry point to the housing market, he added.
In the rental market, Western Australia was the standout performer in the March quarter, recording a growth of 2.4 per cent on the back of a resource-led population growth. In contrast, Victoria recorded the slowest growth of 0.3 per cent.
Despite the improving demand for housing, the survey noted “it is unlikely that we will see a solid upturn in house prices over 2013-2014” due to cautious spending and borrowing behaviours.
Other areas across the states were also nominated for their growth potential.
The Perth suburbs of Victoria Park and Bayswater were highlighted for their standout growth prospects, while the inner Melbourne suburb of Richmond was the favourite Victorian suburb for capital growth in the next year.
In Queensland, Mackay replaced Gladstone for its capital growth potential, while Townsville and the inner northern Brisbane suburb of Kelvin Grove were also picked as favourites.
In New South Wales, Sydney’s western suburbs of Blacktown and Penrith, and the south western suburb of Campbelltown were also nominated.
