Confidence in real estate sector improves

Confidence in the real estate market in New South Wales is up, according to a new study by the Property Council of Australia and ANZ.

Where 100 points is considered neutral, the confidence index rose from 102 in the previous quarter to 107 in the December quarter.

3,500 professionals in the real estate industry as well as real estate and construction industries, across the country were polled, with about one-third of those from New South Wales.

"Combined with lower mortgage rates improving housing affordability, lower residential rental vacancy rates are expected to drive rents and yields higher in the year ahead, attracting first home buyer and investor residential sales activity," says Paul Braddick, ANZ head of property research.

Meanwhile Fairfax reports that there will be a $100 million residential development in Canberra, along the Kingston foreshore.

It will consist of around 140 residences and commercial spaces, which will boost the building sector. Master Builders Australia's ACT executive director John Miller told Fairfax that the construction business contributes billions of dollars to the local economy. As a result of this, he says that the government needs to follow through on its election promises in the territory in order to stimulate the sector and boost the wider economy.