NAB Residential Property Survey up strongly in March Qtr

NAB Residential Property Survey up strongly in March Qtr

The NAB’s March Quarter Residential Property Survey has seen a large jump in the headline index, to a level of +35 (from +8 in Q4). This is the highest level in this Survey’s short history since 2010.

Residential housing market sentiment rose in Q1 across all states except Queensland. There was a big turnaround in sentiment in Victoria and South Australia, with the index now positive in both those states. NSW improved further, while WA remains the stand-out. Regarding the outlook, all states are expected to record stronger price and income growth in next 1-2 years.

House price expectations remain strongest in WA for the coming year (+3.8%) while the other states are all around 1½ - 2½% expected growth. Capital growth expectations in the next year are strongest in the sub-$500,000 range, but improvements are expected across all price levels.

However NAB’s house-price model indicates house prices will grow 1.7% over the coming year, so a bit weaker than the Survey respondents’ forecast of 3.8%. Perth, Sydney and Brisbane are expected to perform best.

The Survey again highlights the improving performance of the residential housing market. House prices rose in Q1 and are up across the country in the past year (except for Hobart), supported by lower interest rates and rising consumer confidence.

For the full report click on the link below:

NAB Residential Property Survey