Property prices up again in Australia as central banks warns of overheat
|Friday, 02 October 2009|
Residential property prices in Australia are continuing to surge as the Royal Bank of Australia warns that the real estate market is about to explode.
The latest price index from RP Data shows house prices rose 1.9% in August, the largest monthly movement since the group’s indices began in January 2005.
Overall, Australian house prices are up 7.9% in the same period.
Darwin was the only capital city to record negative growth in August, with prices falling 0.8% followed by Perth was next lowest, with growth of just 0.65%.
‘It is looking increasingly clear that Australia has avoided the large falls in housing prices seen in some other countries over the past two years or soBut looking forward, the risk is that we might move towards undesirable strong growth in housing prices,’ Richards said.
RP Data research director Tim Lawless said there is also a positive outlook as the growth in prices would help ease availability to credit and increase supply.
‘This price growth will also go a long way to comforting risk-averse lenders to start providing credit again to developers, which has been one of the main bottlenecks on the supply side,’ he said.
‘And it will stimulate the reallocation of resources away from other sectors of the economy into much needed housing investment,’ he added.
This story relates to: [SEE ALL]
BOOKMARK THIS PAGE (What is this?)
Search for Properties:
It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.