Australia 'may see property correction'

A property correction that could prevent Australian house prices surging out of the range of UK buyers may be on the cards, it has been stated.

Head of research at overseas investment magazine Property Frontiers Christopher Chadd noted that places like Melbourne and Sydney saw double-digit growth in 2009, despite not experiencing large falls in 2008, making the country an "anomaly" in the western world.

He added: "I think the market is too expensive and I expect a correction in 2010 to take place."

Mr Chadd stated that for the most part, investments in places outside the major cities would not make good returns, although he said an exception to this would be mining areas in the north-west of the country.

The latest RP Data-Rismark National Home Value Index, which was published on New Year's Eve, showed that in November the average home in Australia rose in value by 1.1 per cent, with an overall rise of 11.3 per cent in the first 11 months of 2009.

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