Australian property offering increased returns

Returns from Australian property investments jumped nearly six-fold over the second quarter of the year, according to figures from property research firm IPD.

Total returns for all property types, including income and capital, rose from one per cent in the year to March 2010 to 5.9 per cent in the year to June, reports Reuters.

"It came from a pull back in negative capital growth," said Anthony De Francesco, IPD managing director for Australia and New Zealand. "We will continue to see upswings but the pace will be moderate, in line with the general softening in the economy."

He added that annualised capital returns should return to positive next quarter after hitting -6.1 per cent in June 2009.

Earlier this month, figures from Australia's Bureau of Statistics highlighted that residential property prices in the nation have increased by almost 20 per cent in the past year.

According to a report from Property Wire, quarterly growth to June stood at 3.1 per cent, while annually the increase reached 18.4 per cent.
 

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