Analysis has found that only one state out of all of Australia’s states and territories recorded positive sentiment towards its property market despite a lack of burgeoning hotspots.
According to the latest NAB Residential Property Survey for Q1 2019, South Australia was the only state or territory to record positive sentiment based on capital growth and rent expectations, at an index of positive 32.
Commenting on the report, NAB acting SA general manager Libby Greenwood said that results showed market confidence was on the rise, reflecting the strength of the state’s economy.
“South Australia’s market sentiment is 47 points higher than the national average. All other states reported negative sentiment in the latest quarterly survey,” Ms Greenwood said.
The report also forecast the strongest house price growth for any mainland capital city at 0.5 per cent in 2020, based on survey results from investors, property owners, real estate agents, property managers, developers and asset/fund managers.
NAB economists reflected the price growth sentiments, predicting Adelaide will experience the strongest price growth across any state or territory at 1.7 per cent.
However, despite the strong sentiment for the state, NAB did not predict any South Australian suburbs to experience above average growth over the next 12 months.
The average survey rental growth forecast was also revised, increasing to 1.6 per cent compared to the previous survey at just 0.1 per cent.
“This forecast reaffirms Adelaide’s reputation as a ‘no frills’ property market with buyers able to take confidence in its consistency,” Ms Greenwood said.
Across South Australia, first home buyers were the most active in the market during the first quarter of 2019 at 55 per cent of all new housing market sales.