House price expectations continued to improve in the December quarter and are now back in positive territory for the first time in 18 months.
New South Wales and Victoria, where capital city prices have had the strongest rebound, have seen a solid improvement in price expectations, while the bounce in Queensland and South Australia has also been strong. In Western Australia, price expectations are also now in positive territory.
Of the respondents that operate in the residential sectors of New South Wales and Victoria, a net 29 per cent and 37 per cent, respectively, expect housing prices to rise in the next year (compared with a net 24 per cent and 17 per cent expecting declines in the previous survey).
For the country as a whole, 33 per cent of survey respondents expect housing prices to rise in the coming year — the strongest result since September 2015.