Australian property prices show rise

A new survey has indicated that

prices have risen.

The RP Data-Rismark Hedonic Property Index revealed that the average house price in the country rose by 1.1 per cent in the first two months of 2009, having fallen by three per cent in 2008.

Australia's two largest cities drove the increase, with

prices up 1.9 per cent and Sydney recovering by 0.5 per cent.

Investors keen to buy in locations where prices are rising may pick these locations over the other major cities, with Brisbane, Perth, Adelaide and Canberra all experiencing continued declines.

RP Data said that lower mortgage costs after a series of interest rate cuts had made buying property a more attractive proposition.

Earlier this month, the board of the Reserve Bank of Australia voted to keep the cash rate on hold at 3.25 per cent.

The rate has been cut several times since it peaked at 7.25 per cent in the summer of 2008, with the first of these reductions coming last September.

Like this? Then share with your friends and colleagues!