Current Property News - Market Commentary

The results of a new quarterly survey released by the National Australia Bank (NAB) show that investor attitudes towards buying in the next 12 months have improved. Results for the quarter to March 2011 indicate a 9% increase in the number of people planning to invest in the next 12 months, taking the total amount of willing investors to 33% of respondents surveyed.

NAB chief economist Alan Oster found the results surprising, but indicated that the increasing interest is likely due to rising rental yields and the ability of investors to buy using their self-managed superannuation fund.

WA is expected to reap the biggest rewards as far as rental returns go, with the state forecast to experience a rise in rents of 4.6% over the next 12 months. Nationwide, rents are expected to increase by 3.5% over the same period and 5.2% by March 2013.

The NAB survey explores market conditions in both the commercial and residential property market based on surveys with real estate agents and managers, property developers, asset managers, valuers, owners and investors.