It appears that the nation is set for a period of favourable dwelling construction, which could make rental properties more affordable for investors, as the supply of new properties aims to keep up with demand for housing in the country's most popular locations.
Residential construction an economic pillar
RP Data and the Residential Development Council recently released its Australian Residential Outlook Report, and the findings will impact Australian property investors and home buyers alike.
New South Wales was picked up by the report authors as a clear example of how residential construction can boost a state's broader economy - potentially great news for future prospects, infrastructure projects and employment statistics.
"Residential development activity has long been the litmus test for the economy and its potential to support the economic fortunes of the state budgets is no more evident than the rise displayed in NSW in the past 18-24 months," the report noted.
The capitals of the future
Across the country, dwelling approvals have soared to 30-year highs during 2014, with 193,667 approvals recorded so far. A "significant rise" in multi-unit dwelling starts will be a common theme of 2015, with more investors turning towards medium- and high-density dwellings for portfolio growth.
Property values in Melbourne and Sydney are expected to grow over 2015, which is ideal for those with existing real estate portfolios in these capital cities.
Individuals contemplating first-time property investment may turn to the likes of Brisbane and Adelaide. According to the Australian Residential Outlook Report, the Queensland and South Australian capitals offer favourable yields and may become more popular picks for investors, given they are entering the early stages of the value growth phase.
Housing to drive growth
A more conservative report from BIS Shrapnel, Long Term Forecast 2014-2019, suggests housing will be a "key driver" of growth in the future.
Thanks to a softening in imports and mining investments, housing and exports will help push the economy forward, according to BIS Shrapnel Senior Economist Richard Robinson.
Low interest rates and a lack of residential stock is pushing a lift in dwelling construction, with further momentum anticipated.
Australia's key property markets are experiencing different stages of growth, meaning there are opportunities for investors of all stripes.