Australian property 'still affordable'

Australian property is still much more affordable than it was a year ago, despite a recent rise in the relative cost of buying a home, it has been stated.

The HIA-CBA First Home Buyer Affordability Report for the third quarter of 2009 said that the country's market became 3.3 per cent less affordable for first-time buyers in this period.

However, this still left the index showing a 35.7 per cent improvement on 12 months earlier.

Senior HIA economist Ben Philips observed: "Housing remains more affordable in 2009 than it was through most of the rest of the decade."

However, actions such as increasing the rate of building new homes would be needed to avoid this slipping further, he stated.

The figures predated the decision by the Reserve Bank of Australia to raise the cash rate from three per cent to 3.25 per cent.

Such a move will actually be beneficial for the country's property sector, suggested Brian White, the chairman of real estate firm Ray White.

He said this week it would help provide more stability in the sector.

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