Increasing demand for Australian property is being witnessed at present, prompting analysts to believe a recovery in the sector could be on the way.
Reserve Bank of Australia head of economic analysis Jonathan Kearns told Australian Property Investor that given the fact national population growth has been higher in recent years, more homes are needed to house these people and this could spur construction activity in the coming months.
He commented: "For the past seven years or so, real rents have been rising and the vacancy rate has been below its long-run average, suggesting the rental market has been quite tight."
Mr Kearns added that as a result, there is a considerable positive outlook for the coming years, as markets loosen and housing supply is addressed.
Earlier this month, manager and senior economist for RPS Mark Wallace told the news provider that investment in mining towns across Australia remains strong, particularly due to the high rental returns that can be achieved.
Posted by Steve Douglas
