What are the key economic fundamentals that drive our property market? Firstly, it's population growth. Australia has one of the fastest population growths in the western world. Based on conservative assumptions, Economists BIS Shrapnel estimate Australia’s population will increase by 5.3 million within the next 13 years. With an average of 2.5 people per household this translates to a need for an additional 2.1 million new homes.

Second, construction of new housing. According to many analysts, Australia has a shortage of new housing. This is not true of all areas. There are some pockets of oversupply. However, there is a constant shortage of housing in the popular inner to middle suburbs.

Third, it's employment. Unemployment in Australia currently sits under 6% which is lower than most countries. For unemployment to negatively impact the property market, it requires a large number of people not being abbe able to meet their mortgage repayments, forcing them to sell.

Next, it's interest rates. Interest rates are the lowest they have been for many years. Low interest rates help the affordability of housing. People now have a greater buying power and a higher disposable income.

The fifth factor is consumer sentiment. Consumer sentiment is something that is hard to measure and generally reflects the mood in the market place. With a change in government, coupled with low interest rates and a strong economy, there is a renewed confidence in the property market.

As you can see from the basic economic fundamentals, Australia is poised for a stable property market that should continue to rise over the coming years.