Upswing tipped to run until 2012

By www.apimagazine.com.au, 5 May 2010

Recent interest rate increases haven't dampened sentiment about residential real estate, with a survey suggesting property professionals believe the sector will experience an upswing through until 2012.

The residential market in Sydney, Melbourne and Brisbane would continue to rise alongside increasing interest rates, according to the Australian Property Institute's Australian Property Directions Survey of valuers, fund managers, property analysts and property financiers.

"The respondents to the survey were quite bullish with the ability of the residential market to withstand further increases in interest rates," the institute's New South Wales president, Robert Hecek, said.

"The overwhelming majority of respondents, 94 per cent, believe interest rates will be higher in 12 months' time. Despite this, they're still anticipating the residential property market will continue on an upswing."