Australia property price 'to start rising again'

Australian property has been described as showing resilience in the face of the credit crunch.

In contrast with some countries that have seen large falls in prices, the average home in the country has only seen its value drop by 1.4 per cent in the nine months to the end of September, according to the RP Data-Rismark National Property Values Indices.

Speaking to AAP, Rismark International's managing director Christopher Joye said the market is set to bounce back soon with prices rising, partly due to the increase in housing supply not keeping pace with net immigration.

He commented: "We need to produce 190,000 homes annually but the supply-side is only currently delivering about 145,000 homes per annum."

As a result, Mr Joye concluded, house prices "will almost certainly rise over the medium to long-term".

Those seeking to buy property in Australia may also find mortgages are cheaper than before as the Reserve Bank has cut interest rates by 1.25 per cent since the start of September.