Consistent Confidence in December Quarter: NAB

According to National Australia Bank (NAB) Residential Property Index, consistent confidence in Property market still strengthening a little last December. Even though house prices declines and stronger rental growth, but still business conditions remain consistent with the market growing. The two consecutive interest rate cut had a great impact in the December quarter. National house price continued to fall but rental growth is accelerating. Among the conditions in all capital cities, WA is the strongest mainland conditions recovered but Queensland and Victoria were the poor conditions recovered. First home-buyers and investors are notable increase in the market in which the property remains strong because of the higher demand; therefore there were the best prospects for capital and rental growth.

NAB forecasts that there will have bigger increase in the house price and rental growth in which really helps the market and the economy as well to perform well. Some indications showed in this survey like labor market, shortage of housing, and unemployment rate is low. Although we now expect that there will be interest rate cut this year particularly February and August. Trends will continue because of the first home buyer by slightly stronger investment dema

Residential Property Survey _December 2011_.pdf (194.86 kb)