NAB residential property index ticks into positive for first time since mid-2018
The NAB Residential Property Index has ticked in to positive territory for the first time since mid-2018 as the rebound in the capital city housing markets continues to gather steam.
The Index, a measure of housing market sentiment based on the expectations of property professionals for both capital growth and rents, rose 26 points in the September quarter to an above average +18.
The average survey expectation for national house prices for the next 12 months is positive for the first time since Q1 2018.
“The results suggest the Australian housing market is on the way to recovery.” NAB chief economist Alan Oster said.
The average survey expectation for national house prices for the next 12 months is also positive for the first time since the first quarter of 2018, with prices expected to strengthen moving into 2021.
Property professionals in all states except WA expect to see positive gains in the next year, with Victoria and NSW leading the way.
“This marks a sharp reversal from the previous survey where Victoria and NSW were expected to be the weakest states for price growth and the only states where prices were tipped to fall” Oster said.
Sentiment improved sharply among property professionals in VIC, with the state index climbing steeply by 48 points to +40 to record the best result in the country by some margin.
Only Western Australia saw its sentiment decline.
Following the resurgence in house values, NAB have amended their forecasts for 2020, now predicting 7.4 per cent gains in both Sydney and Melbourne.
They expect Melbourne to outdo Sydney in the apartment ranks, with 7.4 per cent gains in the unit market compared to Sydney's 4.3 per cent.
