Real estate expert Rick Otton believes the Australian market will see a strong year.
In his regular podcast, Mr Otton explained money is continuing to be invested in the country's real estate sector and this will ensure prices continue to grow over the next 12 months.
In particular, he predicted there will be demand from Chinese investors, as well as those purchasing properties via self-managed superannuation funds, however, a shortage of supply will mean values and rents will rise.
"The problem is we have a massive shortage of dwellings because for a long time, the banks weren't lending any money for development. Meanwhile, we keep getting more people and more demand, so that pushes up rents and prices," he explained.
He added that he expects interest rates and inflation to stay low and that banks will start to relax their lending criteria.
Clive van Hore, general manager of home loans at the Commonwealth Bank, recently explained to Courier Mail, that people are not being priced out of the housing market but first-time buyers will need to act "creatively" in order to get a foothold on the property ladder.
Posted by Craig Francis.
