The housing sector is the most likely candidate to replace the mining boom as the primary growth driver for the economy in the year ahead, providing a rare opportunity for large-scale capital growth in property values, according to recently released research.

Trend forecaster CommSec reveals that the housing sector is likely to outperform manufacturing over the next year, with the population rising in most capital cities amid sluggish new home construction. This is expected to put pressure on the supply of new homes, continuing a recent trend of increasing property prices.

CommSec’s revelations come as Your Investment Property unveiled a landmark report in its September issue detailing how investors can take advantage of current capital growth conditions in a number of markets.

Titled “Brace for the Boom”, the report details exactly how Australia’s coming property boom is anticipated to play out and where investors can expect the likely growth corridors to be.

CommSec research puts the timing of the Brace for the Boom report into perspective: “Home prices are lifting at the fastest annual rate in more than two and half years,” it says. “In addition, home sales continue to lift while [recent] data showed that loans outstanding by property investors are growing at the fastest rate in three years.”

CommSec also points out that new construction will need to respond to a surge in demand from owner-occupiers as a tight rental market encourages them to purchase homes. This activity will have a profound effect, not just across the property market, but the economy in general.     

“Housing has more significant multiplier effects across the Australian economy than the mining sector,” CommSec says.

Your Investment Property editor Nila Sweeney says that current housing conditions add up to a great opportunity for investors to get into the market.

The important thing for investors to realise, Sweeney adds, is that not every segment of the Australian property market will perform equally. Enter Your Investment Property’s Brace for the Boom issue. The report reveals where Australia’s demographic shift is occurring and exactly how it will affect each of Australia’s capital cities and states.

An edition not to be missed, Your Investment Property’s September issue is available here.