Capital cities dominating investment in Oz

Demand for property in Australian capital cities remains high, as investors put affordability issues to the back of their minds, new research has suggested.

According to the latest figures from RP Data, home sales in capital cities down under accounted for a massive 63 per cent of all purchases during November 2010, Business Spectator reported.

The research body explained that over the course of the year there have been fluctuations in the popularity of regional and capital markets in Australia, caused largely by concerns surrounding overpricing.

"This is when affordability issues began to arise in the market but it was also the time when the sea change phenomenon started to gather pace," RP Data research analyst Cameron Kusher told the news provider.

“Unlike many other countries, Australia's population is focused within a few areas and this seems unlikely to change any time soon,” Mr Kusher said.

Meanwhile, those looking to buy property in Australia may be interested to learn that interest rate rises are helping to cool the real estate market in the country.

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