Housing market expert, Dr. Andrew Wilson explains why apartment living is a popular choice in Australia

Transcript:

We certainly are seeing the lowest interest rates since the 1960s as a positive driver for affordability.  And that's why we're seeing Melbourne at the moment with an improved economy starting to rise again.

We have seen a surge towards apartment living.  Amenity, affordability,lifestyle.  Some buyers aren't looking so much for that big backyard.  We are starting to see the development of that cosmopolitan inner city lifestyle that revolves around higher density living.  So apartments are the thing of the future.

The Sydney housing market continues to boom.  It looks like that's going to be an unprecedented growth this year and it really is starting to look like an international market.  Which is good news if you own a home in Sydney but not so good news if you're a first home buyer.  That's likely to continue for quite some time.  

Well look.  Market energy depends on low interest rates.  We've seen growth in some of those markets where economies have been strong.  Confidence is very strong in the Sydney market.  It's rising in the Melbourne market but other markets it reflects local conditions. Canberra is looking a lot better, Adelaide looking better, but Brisbane, Perth and Darwin are just so-so at the moment.

Interest rates likely to be flat for the foreseeable future which will start to flatten prices growth.