Australia tipped for housing boom

Australia has been tipped to enjoy a housing boom a few years from now.

In an article written for the Australian on the prospects for the country's economy, chief economist for BIS Shrapnel Frank Gelber said the property market there is already recovering.

He put this down to low interest rates and government incentives to help first-time buyers.

Looking to the future, Mr Gelber added: "Given the extent of under-building and the deficiency of stock, housing will slowly build momentum into what will become a property and construction boom four years from now."

He made the prediction alongside a wider forecast that Australia's economy will grow weakly until 2011, when it will start to experience a more pronounced upturn.

Such a prospect could excite those thinking of buying property in Australia in the hope of enjoying a good return on property.

In its monthly meeting minutes out this week, the board of the Reserve Bank of Australia observed that the volume of mortgage approvals had "strengthened considerably" over the first five months of 2009.

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