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The South Australian property market may have experienced some ups and downs over recent months, but new data suggests it could finally be on the right track.
The Property Council/ANZ Property Industry Confidence Survey for the first three months of 2014 shows there is increased optimism ahead of the state election in March.
Industry confidence in the state has reached 130 index points, up from 114 in December. This not only paints a better picture for South Australia, but also the national property market as a whole.
The national reading on the index increased from 132 in the December quarter to 140 in the first three months of this year, which has largely been buoyed by low interest rates.
Not only this, those with real estate training are also likely to have witnessed a rise in both residential and commercial investment as buyers start to return to the sector.
The residential property market continued to strengthen during the second half of 2013, the data showed, as auction clearance rates, home sales, house prices and dwelling approvals all rose.
Population gains across many parts of the country have led to increased pressure on supply, while a shortage of housing will lead to upward pressure on prices, rents and building activity.
March quarter predictions anticipate ongoing improvement in housing market sentiment, with house prices and residential building activity expected to rise to record levels.
Experts were keen to play down the possibility of a housing bubble. Although strong house price gains are often indicative of this situation, improved housing affordability and the release of pent-up sales will hopefully ensure this situation doesn’t arise.
In light of this, the groups believe a solid pickup in home building activity over the coming year both in South Australia and beyond.
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