Australia tipped for steady growth

Australia is set for steady and stable property price increases in the next few years, it has been predicted.

Most experts in the industry believe the market will see values grow by around five to six per cent in 2010, the Sydney Morning Herald reports.

Senior project manager of residential property at BIS Shrapnel Angie Zigomanis told the paper he expected such a figure, with the Reserve Bank of Australia's (RBA's) monetary policy helping to avoid an unsustainable boom.

"I think you'll find interest rates will keep slowly edging upwards and it'll keep a lid on the massive double digit price growth we were seeing previously," Mr Zigomanis said.

Such a situation could help those investing in Australian property now to enjoy the fruits of their capital gains with less chance of a major downturn caused by a bursting property bubble.

On December 1st, the RBA revealed it was raising interest rates by 0.25 per cent to 3.75 per cent, with governor Glenn Stevens commenting that the board of the institution is seeking to "increase the sustainability" of the country's economic growth.