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SA property market looks forward to brighter future

18 Jul 14

Improvements are likely to emerge throughout the Australian property market over the coming months, as improving sentiment and lending conditions encourage greater activity.

Findings from the September quarter Property Council of Australia/ANZ Property Industry Confidence Survey shows the sector will be expected to pick up pace now the resources boom has ended.

Study authors acknowledged some easing in house price growth over recent months, but explained that this might not be the case for those in search of real estate tips in Adelaide.

Capital city dwelling prices have continued to grow across the majority of capital cities, with Adelaide revealed as having experienced the fourth-largest rise.

There has been plenty of debate over how sustainable Australian property prices are, but ANZ analysts believe there shouldn't be any cause for concern at the moment.

The market is currently benefiting from the improved affordability of loans, stability in the mortgage market, strong demand from investors and solid economic fundamentals.

All of these will work in the favour of the property sector, especially as buyers continue to benefit from the low interest rate environment.

Property Council Acting Executive Director in South Australia Lino Iacomella explained how the state is one area where expectations are beginning to improve.

"The recovery is largely based on expectations of continuing low interest rates, and the likely boost this will provide the land development and housing construction sectors," he commented.

The Property Council/ANZ Property Industry Confidence Survey showed South Australia's reading improved by four points to reach 114, making it the second-highest reading since the survey got underway in 2011.

Mr Iacomella explained: "The property industry confidence index in SA is still 16 index points less than the peak at the start of the year, however we have returned to growth."

He expects that the state's low point has now been passed, suggesting a more positive outlook.