Positive Predictions for Real Estate in New South Wales

Industry experts in the real estate sector across Australia have predicted strong growth for residential real estate over the next year, according to a new report from National Australia Bank (NAB).

The Quarterly Australian Residential Property Survey for Q1 2014 identified a slight lift in housing sentiment over Australia, most notably in the state of New South Wales.

Here, price growth for houses is expected to increase by a large 3.3 per cent, just slightly lower than Queensland at 3.5 per cent.

The report identified that one of the largest drivers of this activity is due to foreign buyers in Australia, who have made their presence in the Australian real estate market known for some time.

Foreign buyer presence accounted for a large 12.7 per cent of demand in the established property market, giving owners wishing to sell their properties a positive signal for the quarter ahead.

Suburbs pinpointed for growth

The NAB report found the areas of Blacktown, Liverpool, Parramatta and Rouse Hill are expected to see above average capital growth for houses over the next year, suggesting strong areas for property investment.

Many of these areas are currently experiencing large development projects in order to keep up with demand and provide for a growing population. For example, Parramatta has redeveloped a precinct in the CBD to provide more commercial and residential real estate opportunities to turn it into a more liveable area for residents and businesses to thrive in.

Confidence high in NSW

Following the NAB report, the Property Council of Australia and ANZ released a new Property Industry Confidence Survey, which showed that New South Wales is currently the most confident state.

While a score of 100 on the confidence index is neutral, New South Wales recorded a high 140 for the June quarter. Much of this activity is due to the level of construction in the state, as well as high staffing levels and large predictions for price and capital growth.

"Strong housing sales and house price gains in particular have driven the June quarter outlook for the NSW property sector higher," said Paul Braddick, ANZ head of property research in a statement.

Figures from RP Data have shown a 15.6 per cent year-on-year increase for housing values in Sydney in April this year, which is the highest seen across the country. According to RP Data Research Director Tim Lawless, housing values in Sydney are now 15.8 per cent higher than the previous peak, showing a very strong and still growing market.