Australia’s property investors could expect the current upswing to culminate into a boom by 2012, according to leading economic forecaster and industry analyst BIS Shrapnel in their recently released February 2010 Update report.
Richard Robinson, BIS Shrapnel’s senior economist and report author said that the Australian economy is expected to grow and pick up speed over the next two years and build into a boom later this decade.
“We are now well and truly into recovery from what turned out to be a modest downturn – and not a recession. But it’s now time to look forward not backward. We’re into a rebuild phase, rather than a rebound.”
“Investment, and particularly the construction side of it, is the primary driver of growth in the economy. From 2010, housing construction will take over from waning public spending as the key driver of growth.”
“Despite lingering affordability problems, healthy consumer confidence, high rents, a chronic undersupply and rising immigration will continue to boost first homeowner, investor and upgrader demand,” said Mr Robison.