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Aussie house prices slump
Amajor Australian housing industry forecaster has predicted that the price of property in Australia’s main east coast cities will remain in decline at least until 2008, writes Patricia Curmi
Industry analyst BIS Schrapnel's report, Residential Property Prospects 2006 to 2009, highlighted the inaffordabilty of properties in the major cities as a reason for the continued downturn of values, as well as cheaper rent costs and a surge in popularity among regional areas with house hunters.
While the news may come as a blow to property owners looking to sell, it has come as welcome news to first time buyers and migrants looking for a good property deal with their converted pounds. Perth and Darwin appear to be the only Australian cities experiencing a significant rise in property prices.
The Australian Bureau of Statistics has revealed that while prices in the Western Australian capital city have risen by 28 per cent since last year, in Sydney they have fallen by 3.8 per cent, while Canberra, Brisbane and Melbourne have experienced paltry increases in property prices by comparison.
However, even in Perth the property boom is expected to slow down by around 3 per cent. Melbourne metropolitan area property prices have dropped from the five year peak recorded in 2003, and the median property price is currently put at AUS$359,500 (around £345,000) according to the Real Estate Institute of Victoria.
In Sydney, which is the most expensive Australian city in terms of property prices, the average property price of AUS$486,000 (£199,000) after a 57 per cent rise between 2001 and 2004. In contrast regional areas in New South Wales have seen prices rise as buyers look to the suburbs and further afield for homes and investment properties. A shortage in supply will also mean Brisbane sees a four per cent per yearly growth in house prices until 2009, although, as in Sydney, the ceiling on affordability has been reached, claim experts at BIS Schrapnel.
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Property prices in WA
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