Sydney and perth to see property price growth of 20% by 2014, investor sentiment to improve: report

Property prices are set to grow over the next few years, as consumer confidence rises in tune with a growing demand from Asia for Australian resources, according to a new report compiled by QBE Lenders Mortgage Insurance in conjunction with BIS Shrapnel.

The report also predicts that residential property investment is set to pick up after a disappointing few years, with Western Australia tipped as the state to record the biggest growth.

The report comes just a few days after separate research from Deutsche Bank noted the amount of investment in residential property has declined over the past year, partly due to the increase in maintenance costs and flattening prices.

The QMI report states that despite the current weak economic environment, delaying the recovery in first home buying, the outlook is positive with the group confident prices have reached their bottom.

Source: SmartCompany.com.au