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Property sentiment rises across SA

1 May 14

Property market confidence can have a profound impact on your decision to buy real estate - the more optimistic the situation is, the more likely people are to want to make a purchase.

The quarterly NAB Residential Property Index for the first three months of 2014 registered a one-point increase, giving the index an overall reading of 37 points.

South Australia was one state where sentiment registered a considerable improvement, helping to offset declines in other parts of the country such as Victoria and Western Australia.

Investors in South Australian real estate are also likely to be glad to hear that property prices are expected to rise over the next 12 months, with the state mooted for gains of 2.2 per cent.

At present, the state capital of Adelaide is forecast to see 3 per cent growth in property prices over the year to March 2015.

NAB has witnessed a surge in some types of property over others - demand for established real estate has strengthened across all market locations and segments. However, there has been less desire for middle and outer ring low-rise apartments.

This situation could change over the coming months, as the bank believes a slight softening in demand will take effect in the near future.

Would-be buyers were asked to name the main barriers to seeking real estate advice, with employment security emerging as the greatest impediment. New South Wales was the only exception, as buyers were concerned about a lack of stock.

The next question would-be buyers are likely to be asking themselves is where exactly in South Australia they should be seeking the best returns on their investment.

Analysis carried out by the bank indicates that Norwood could be one area to watch, not least because capital growth in the suburb is predicted to be above average over the next 12 months.