Australian property price growth 'levelling off'

Residential property growth in Australia is likely to slow with fewer first-time buyers and increasing interest rates, it has been claimed.

The latest Residential Property Prospects Report from BIS Shrapnel has suggested that prices are unlikely to fall and rents will continue to rise but at a slower pace.

Angie Zigomanis, a senior project manager at the firm, explained that the end of government grants meant that affordability had suffered.

However, the report claimed that real estate investors will replace some of the demand lost because of these factors.

A more stable interest rate will underpin investor confidence as the economic situation continues to improve.

Among the areas that BIS Shrapnel claimed would experience the strongest growth are Sydney and Perth, while weaker demand will be seen in Brisbane, Hobart and Canberra.

The latest statistics from the RP Data Rismark Hedonic National Home Value Index supports this view, with the document reinforcing the fact that property values will begin to level off.

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