According to QBE LMI's 'Australian Housing Outlook' report, which was researched and written by BIS Shrapnel , the continued improving economic environment is expected to facilitate further growth in house prices over the next three years to June 2013.
The report forecasts that the strongest growth in house prices will be in Sydney, Adelaide and Perth. More moderate growth in house prices is expected in Brisbane and Hobart with the weakest price growth expected to be in Darwin, Canberra and Melbourne.
Ian Graham, CEO of QBE LMI, explains that there was a combination of factors that contributed to the gain in momentum in the Australian housing market. These factors included the First Home Owner's Grant Boost Scheme and record low interest rates.
“Future median house price rises will be underpinned by a deficiency of dwelling stock across most capital cities, which in turn will lead to tight vacancy rates and solid rental growth, flowing through to investor demand” said Mr Graham.