Prices to grow after 'pessimistic' year

by Adam Smith15 Dec 2011

APM has claimed 2012 will see the housing market return to growth after a "pessimistic year".

The property analysts have predicted a mixed bag across capital city markets for 2012, but forecast a general return to price growth. Darwin, Perth and Brisbane were tipped as the most promising growth markets, with Sydney and Canberra set to achieve "reasonable" growth.

"Demand for housing will intensify in 2012, particularly in Sydney, Canberra and Perth, which will see housing markets reenergised, albeit at different levels," APM chief economist Andrew Wilson said.

SQM Research claimed yesterday that housing growth for 2012 would hinge on the fate of the Eurozone, and that closing credit markets could cause significant falls in prices. APM gave a more bullish assessment of Australia's resiliency.

"Australia’s economic fundamentals are strong, and are well positioned to weather any downturn in international markets. This, coupled with renewed buyer confidence, will be the key to driving prices growth in the New Year," Wilson said.

Wilson predicted median national prices would rise 3-5% through 2012. Melbourne, Hobart and Adelaide were forecast to be the weakest markets, with growth ranging from 0-3%.

Related stories:

House prices teeter on European knife-edge