Australian's Are Optimistic Towards Growth in Property Values

A new survey shows that despite falling property prices making headlines across the country, two in five Australians are expecting prices to rise.

A survey of almost 2100 people, commissioned by comparison site Canstar, found 5 per cent of Australians expect prices to skyrocket, with an additional 33 per cent expecting steady growth, while a quarter predict prices will remain stable.

“It’s a bit optimistic,” said Steve Mickenbecker, Canstar’s group executive of financial services.

“All the data and the last 12 months … suggest that we’d see a further fall particularly in Sydney and Melbourne," he said.

“It could be wishful thinking,” he added. “But I think [those expecting growth] aren’t people who follow the market that closely … they’re thinking we’ve always had steady growth in property in Australia, why wouldn’t we continue to have it.”

It was in Brisbane and Tasmania where people were most optimistic about value increases, where one in two people expected prices to rise. In Brisbane, property value has remained broadly steady. 9 per cent of Brisbane respondents expected the property prices to skyrocket.

However a third of respondents in the weakening markets, Sydney and Melbourne, expected a growth in price. More than 5 per cent of these respondents expected prices to skyrocket.