Australia sees rise in economic growth

Australia has seen its level of gross domestic product increase, something that may help provide a further boost to the property sector in the country.

Official figures have revealed that in the second quarter of this year the economy grew by 0.6 per cent, compared with 0.4 per cent in the first quarter.

Citi Group economist Joshua Williamson told ABC News Online that this was a much better outcome than had been expected by analysts, who had forecast a 0.2 per cent increase.

Mr Williamson said low interest rates and government stimulus action had been major factors, adding the caveat that the effect of these may wear off slightly.

However, he added: "It's clear that the Australian economy had probably much more momentum than we previously thought in half one and [it] goes into the second half of this year with that greater momentum and higher levels of confidence."

As the economy recovers in Australia, evidence appears to be emerging of a revival in the property market.

The Global Property Guide said last week that the country had seen a 3.73 per cent rise in house values over the course of the past three months.

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