Australian Property Prices Rise Once Again

Australian Properties Price increase

Australian property prices have risen for the second quarter in a row, according to the latest available data. This growth in the market is said to be related to the recent Mining Boom in Australia, and the low interest rates we are seeing. Figures from the Australian Bureau of Statistics show that in the third quarter of 2012, prices have climbed 0.3% above what they were this time last year, and in the second quarter of this year, prices increased by 0.6%. These inclines follow five straight quarters of declines.

“Lower than average interest rates are providing some support to the demand in the economy”, said RBA Deputy Governor Philip Lowe, stating that these low interest rates have led to an improvement in the property market. Additionally, borrowing costs are also now below average, providing the support required to meet the demand. Australia’s largest mortgage broker, AFG, which accounts for 10% of the overall mortgage market, has reported that it has approved its biggest volume of new home loans in 3 years.

The Market Growth has been driven by a number of other factors too, including buyer incentives, local population growth, and value-buying momentum in prestige markets. And, it seems things are continuing to look up. Capital City forecast property prices rise between another 4% and 7% in 2013, according to the 2012 SQM Research ‘Boom and Bust Report’, with the report also stating that Sydney remains the ‘blue chip of real estate markets’.