Real Estate & Economic News in Australia from Propertyshowrooms.com

Hobart has 'most affordable property of Australian regional capitals'

Wed, 28 Mar 2012 00:00:00 GMT

Hobart, in Tasmania, has been named as the most affordable regional capital in Australia for home purchasers.

Figures from RP Data revealed 41.2 per cent of the properties on sale in the city were marketed at less than AU$300,000 (£197,769). By contrast, Canberra is the most expensive location in which to buy Australian real estate, with just 8.8 per cent of sales coming in lower than this amount.

The organisation pointed out, as a general rule, house prices in the regions around the main state capital are more affordable, with at least a quarter of all property transactions coming in below the AU$300,000 mark.

Buyers keen to pick up a home for under this figure should be prepared to look at suburbs further outside the city centre, as well as consider apartments rather than houses, RP Data added.

Housing affordability was found to be one of the main areas of complaint for those living in Australia's state capitals, according to a recent survey conducted by the Property Council of Australia.

Just 34 per cent of those questioned believe enough affordable homes are being provided in their area.

Queensland housing market 'showing signs of recovery'

Fri, 23 Mar 2012 00:00:00 GMT

There are indications that the housing market in the Australian state of Queensland is beginning to improve.

According to data published by the Urban Development Institute of Australia (UDIA), a rise in the number of building approvals and an increase in the level of lending in the state have both been recorded in the first three months of 2012.

Duncan Maclaine, director of policy and economic research at the UDIA, added the volume of registrations of residential vacant lots has also started to climb.

However, he is cautious; pointing out Queensland is one of the poorest performing Australian property markets at present.

"The recovery also remains patchy, with strength building in the resource regions and Brisbane but weakness remaining in markets such as the Gold, Sunshine and Fraser Coasts," Mr Maclaine added.

Research published recently by Residex predicted house prices in Queensland as a whole will rise by 8.36 per cent over the next ten years, with values in Brisbane expected to climb by 8.21 per cent in the same timeframe.

Australian house prices fall

Fri, 3 Feb 2012 00:00:00 GMT

The value of homes in Australia dropped by 4.8 per cent in the final quarter of 2011, compared to the same three-month period in 2010.

Data collected by the Australian Bureau of Statistics examining the performance of the real estate markets in the country's eight state capitals revealed Brisbane's property prices took the biggest hit, falling by 6.7 per cent annually.

Meanwhile, Canberra held up the best, recording a decline of just 2.6 per cent, while Sydney put in a similar performance with a 2.7 per cent slide.

The quarterly figures released by the organisation indicate that in certain markets, Australian property prices may be making a recovery.

Perth, Canberra and Hobart all posted increases in real estate values in the final three months of 2011 of 0.5 per cent, 0.7 per cent and 0.8 per cent respectively.

Last month, the Housing Industry Association (HIA) published mortgage figures for November 2011, which pointed towards a "modest revival" in the established lending market.

Dr Harley Dale, HIA chief economist, explained lending for purchases of existing homes have now risen in five out of the previous six months.

New home sales in Australia rise

Tue, 10 Jan 2012 00:00:00 GMT

A new report has revealed the number of new homes sold in Australia climbed in November 2011, compared to the previous month.

The research conducted by the Housing Industry Association (HIA) and Jeld-Wen found the number of new-build properties bought in Australia during this period increased by 6.8 per cent.

Dr Harley Dale, HIA chief economist, explained interest rate cuts announced by the Reserve Bank of Australia (RBA) have helped boost Australia's real estate sector.

In November, the RBA reduced its interest rate by 0.25 percentage points, bringing it to 4.5 per cent. This was followed by a further 0.25 basis point cut in December, with the country's rate now standing at 4.25 per cent.

Dr Dale described the HIA-Jeld-Wen findings as "healthier but not unexpected", however, he cautioned that the nation's real estate market is not in the clear yet.

He added there is "a long way to go to restore new home sales volumes to acceptable levels," noting that the number of such transactions is currently "running at least 20 per cent below what you could conservatively call healthy".

Australian property 'expected to recover in 2012'

Wed, 21 Dec 2011 00:00:00 GMT

The majority of property markets in Australia are expected to undergo a recovery during 2012, according to a new report.

Australian Property Monitors (APM) has released its State of the Market survey for December this year, noting overall during 2011 "housing markets entered a correction phase with income growth required to catch up with the finance requirements for home purchases".

The organisation added that natural disasters, coupled with low confidence among consumers and a mixed economic performance for the country, have resulted in fewer buyers entering the Australian real estate market.

However, APM is predicting a better performance in 2012, citing anticipated economic growth and rising demand for residential properties as two catalysts that can boost the sector.

Meanwhile, the firm also expects more interest from investors over the coming 12 months and has asserted average house prices in the country will climb by between three and five per cent in this period.

However, Professor from the University of Western Sydney Steve Keen recently predicted in an interview with the Sydney Morning Herald that Australian property prices will fall in 2012, stating the "acceleration of mortgage debt" will push values lower.

Australian interest rate hike helps drag property prices lower

Thu, 6 Oct 2011 00:00:00 GMT

The Reserve Bank of Australia (RBA) decision to raise interest rates to 4.75 per cent in November last year has had an effect on the country's housing market, it has been claimed.

Global Property Guide noted that since the rate hike, Australian real estate values have fallen, adding that the RBA moved to cool the market after significant price rises were recorded in the year running up to March 2010.

According to figures from the Australian Bureau of Statistics, the average value of a home across the nation's state capitals fell by 1.9 per cent on an annual basis in June this year.

Of the eight cities, Perth experienced the greatest fall of 4.1 per cent in this period, while only Hobart and Canberra bucked the trend with rises of 2.8 per cent and 2.2 per cent respectively.

The news provider cited numerous reasons why the Australian housing market has avoided a crash similar to those experienced in other developed countries.

Among them were a shortage of new homes due to population growth, stricter lending standards than in the US and record-low rates for interest on mortgages.

'Many reasons' for Brits to move to Australia

Fri, 30 Sep 2011 00:00:00 GMT

There are plenty of reasons why Britons could consider relocating and buying property in Australia.

This is according to Tom Blackett, a spokesman for the Australian Visa Bureau, who noted the country has everything that people love about the UK, but with much better weather.

He stated the country is among the most popular destinations for those who want to migrate, possibly because of the fact that it is "teeming with social, economic and lifestyle opportunities".

"On the whole, Australia offers a lifestyle that is healthy and rewarding," Mr Blackett observed.

Because of the range of activities on offer, many may be tempted by sunnier climes in the Southern Hemisphere.

Mr Blackett remarked there are over 10,000 beaches to sample in the nation and "almost perpetual summer", while Australia is ranked second in the United Nations Human Development Index.

It comes after Eynas Brodie, editor of Australian Property Investor, remarked house prices down under are holding firm at present.

Australian housing market 'holding strong'

Fri, 16 Sep 2011 00:00:00 GMT

The key fundamentals in the Australian housing market are helping it to perform during the global economic downturn, it has been claimed.

Editor of Australian Property Investor Eynas Brodie stated that a lack of supply of housing, coupled with low levels of unemployment and a stable economy have helped keep value growth in the real estate market on track.

She acknowledged that in the short term, the residential sector is expected to remain flat, but Ms Brodie is confident that it will pick up.

"As confidence returns and people feel comfortable with spending again, property prices should start moving again," she asserted.

Ms Brodie also pointed out that many Australians are currently saving their spare cash, which may then be ploughed back into the property sector as the economic outlook improves.

The RP Data - Rismark Home Value Index for July revealed that average home prices across Australia's major cities recorded a seasonally-adjusted annual decline of 0.6 per cent.

However, residential markets in Darwin, Sydney and Canberra delivered marginal growth in capital values during this period.

Property values in Australian capitals fall

Mon, 5 Sep 2011 00:00:00 GMT

House prices in Australia's capital cities dropped by 0.6 per cent in July, according to the latest figures in the RP Data-Rismark Home Value Index.

On an annual basis, a fall of 2.9 per cent was recorded, although in Sydney and Canberra, capital values rose by 0.5 per cent and 1.9 per cent respectively in the 12 months to July 2011.

Rismark's international economist Christopher Joye explained that the next interest rate decision by the Reserve Bank of Australia (RBA) could be crucial for the Australian real estate sector.

"If rates do remain on hold, or begin to fall, we would expect to see Australia's housing market find a base and begin to generate capital gains again," he stated.

Mr Joye added that it would be "surprising" if the RBA had "come to the end of its tightening cycle".

A report published by Savills last month named Sydney as one of ten world class cities for residential property investment.

The firm concluded that the Australian location represented the best value among the so-called "old world" destinations that also includes London, Paris, New York and Tokyo.

Decline predicted for Australian property market

Tue, 16 Aug 2011 00:00:00 GMT

One economist has predicted that the Australian property market could experience a significant decline.

In an interview with the Herald Sun, Harry Dent - a US economist - described Australia's real estate sector as "the most over-valued in the western world".

He stated: "I think prices will go back down to where they were in mid-2000, to where young families can start affording a house again - so that could prove a good thing."

Mr Dent also said the property industry in Australia could see a crash similar to the one that occurred in Japan in the late 1980s.

The most recent figures published in the RP Data - Rismark Home Value Index showed that house prices in the nation's state capital cities fell by an average of 0.2 per cent in June compared with May.

Year-on-year, capital values were down by two per cent in June, although some cities such as Brisbane and Perth saw larger falls of 6.3 per cent and 4.7 per cent respectively.

Australian building approvals fall

Thu, 4 Aug 2011 00:00:00 GMT

Building approvals in Australia have reached a two-year low, new figures have revealed.

Data published by the Australian Bureau of Statistics showed that in June, the overall number of dwellings approved dropped by 3.5 per cent in seasonally adjusted terms compared to May.

Chief economist at the country's Housing Industry Association Harley Dale said that "evidence continues to mount of an accelerated deterioration in new home building conditions".

He went on to describe the situation as "unequivocally weak", noting that housing starts will be running below levels of demand this year.

Queensland saw its approvals for new homes drop by 18.6 per cent in June, while South Australia recorded a decline of 12.2 per cent.

However, Victoria and New South Wales both saw their figures improve, with the number of permits granted for building rising by 6.9 per cent and 3.2 per cent respectively.

Mr Dale stated that taxation on new residential construction in Australia is just one of the areas that needs to be addressed by the government.

Property values in Australian cities 'flat'

Tue, 2 Aug 2011 00:00:00 GMT

New research has revealed that the price of real estate in Australia's capital cities is broadly flat.

According to the RP Data - Rismark Home Value Index, houses saw their worth fall by an average of 0.2 per cent in June, compared to the previous month.

However, not all the cities surveyed registered a drop in property values, with Sydney seeing prices up by 0.5 per cent year-on-year.

Brisbane and Perth did not fare so well, recording a 6.3 per cent and 4.7 per cent decline respectively.

Rismark's economist Christopher Joy commented: "We think the RBA [Reserve Bank of Australia] is likely to raise rates at least once or twice more to address Australia's burgeoning inflation problem, which means dwelling values will probably soften a bit further. This should open up attractive investment opportunities."

Last month, a PRDnationwide survey noted that certain areas of Brisbane offer potential for investors because prices are currently affordable, while improvement works due to be carried out will help boost values in the future.

House prices slide in Perth, Australia

Mon, 25 Jul 2011 00:00:00 GMT

Perth in Western Australia has experienced its fifth consecutive quarter of property price falls, new figures have revealed.

The preliminary findings by the Real Estate Institute of Western Australia (REIWA) show that housing values slid by two per cent during the second quarter of this year, compared to the first three months of 2011.

Alan Bourke, president of the organisation, commented: "Our early data suggests there has been little movement in the median sale price for multi-residential, but turnover for units, villas and townhouses has been stronger than in the previous quarter."

He added that he expects the average value of a dwelling in the city to stand at around AU$475,000 (£315,938) once all the sales information has been collated.

In May, REIWA criticised the state government for failing to take steps in its budget to help boost the provision of affordable housing in the region. The association had previously called for tax breaks for those who own more than one property in a bid to help stimulate the real estate sector and introduce more rental accommodation.

Australian property prices down 2% in Q2

Mon, 18 Jul 2011 00:00:00 GMT

Prices for property in Australia fell by two per cent in the three months to June, according to a new report.

The most recent National Australia Bank (NAB) Residential Property Index also shows that house prices declined in all states and rental growth slowed across the country, although the latter still remains in positive territory.

Queensland saw the largest drop in values during the second quarter, mainly as a result of the ongoing effects of the floods that took place there at the start of the year.

Despite this, the NAB predicts that property prices will begin to recover in the next few years, hitting normal levels by June 2013.

Capital growth is most likely to be seen among properties worth AU$500,000 (£332,558) or less over the next 12 months.

The forecast appears to be at odds with a recent report from Deutsche Bank's Gus Medeiros, who said that Australian property prices will continue to fall, according to Bloomberg.

Australian property prices 'likely to see further drops'

Wed, 13 Jul 2011 00:00:00 GMT

Experts have said that those considering property investment in Australia will see prices continue to drop.

Gus Medeiros, head of credit research and strategy at Deutsche Bank, wrote a report for the financial institution claiming that there is set to be a 30 per cent fall in average house values in the country.

According to Bloomberg, house prices will come down in line with recent changes, which saw a 0.3 per cent drop in property values in the eight capital cities in Australia, while the number of homes available is also increasing.

However, banks may have a hard time dealing with the decrease in house prices and their problems are set to be compounded by a nine per cent default rate, which could affect lending, Mr Medeiros also warned.

RP Data recently reported that house prices across Australia are down 1.2 per cent year-on-year, having dropped 2.7 per cent in the first five months of 2011.

Could the Australian housing market take a hit?

Tue, 5 Jul 2011 00:00:00 GMT

Australia's housing market could be set for a slump as home prices drop to a three-year low in 2011.

According to Bloomberg, Australian property could see values tumble as much as 40 per cent in the near future as overseas investors cite high debt, increasing interest rates and expensive dwellings as problems for the sector.

Economist at JPMorgan Chase & Co Ben Jarman said the country sticks out as the one nation that has not had a "meaningful correction" following the property price bubble bursting.

He remarked: "The thinking among market bears is that surely that domino has to fall as well, particularly when you saw a very strong year for price growth in 2009 and 2010."

However, industry analyst firm BIS Shrapnel predicts the housing market will not crash, instead forecasting steady prices throughout the rest of the year and moderate growth until 2013.

RP Data recently revealed that the median value of a home in the country's eight capital cities was AUD$470,000 (£315,100) in May.

Australian property market 'to start recovery'

Wed, 29 Jun 2011 00:00:00 GMT

Property prices in Australia are expected to remain steady throughout the rest of this year, one business research organisation has predicted.

BIS Shrapnel has published its Residential Property Prospects 2011-2014 and stated that a crash in the market is not anticipated.

In fact, the firm commented that some of the nation's state capitals should experience "moderate price growth over the following two years", despite a drop in the median value of homes being recorded in many areas in the first three months of 2011.

Meanwhile, chief executive officer of Metropole Property Strategists Mike Yardney agreed that the Australian real estate sector is on the road to recovery.

He cited population growth, a culture of homeownership and a lack of new developments as factors that could support property prices and underpin growth within the industry.

Mr Yardney also noted that due to a shortage of homes in certain areas, rents are expected to rise, which could be good news for any investors with residential properties in their portfolios.

Regional variations emerge in Australian property market

Thu, 9 Jun 2011 00:00:00 GMT

Regional differences are emerging in the Australian housing market, with some regions reporting price rises and others seeing values decline.

Sydney and Canberra are seeing real estate values continue to climb, but those in Perth and Brisbane falling, according to the latest house market index.

In addition, the figures show that cheaper properties are selling better than the luxury end of the market, with interest rates and natural disasters such as the floods in January taking their toll.

According to Tim Lawless, RP Data's research director, expensive suburbs have helped drag the overall market down.

Indeed, over the year to end April, properties in the most expensive suburbs fell 5.4 per cent. This compares to declines of 0.9 per cent and 0.5 per cent in the middle priced suburbs and cheapest suburbs respectively.

"The luxury end of the housing market is also showing its volatility. During the growth phase of the cycle the most expensive homes realised the highest capital gains," he said.

"Yet as the market cools premium home values seem to be losing steam the fastest."

New home sales down under are 'sluggish'

Wed, 1 Jun 2011 00:00:00 GMT

Evidence of a lull in the Australian property market has been further reinforced by new figures which show that new home sales remain subdued.

A report published yesterday by the Housing Industry of Australia (HIA) found that home sales edged up by 0.2 per cent last month, with activity well below the long-term average.

According to experts within the sector, this decline in activity is a direct result of weak buyer sentiment and excessive government regulation.

Indeed, so far this year sales of new detached houses are 22 per cent below the long-term average and sales of multi-dwelling developments have fallen behind their long-term levels by more than 50 per cent.

''Clearly, the higher interest rates of 2010 and the speculation about rate hikes sooner rather than later is not doing a lot for confidence and demand in the industry,'' HIA chief economist Harley Dale said.

Elsewhere, A Place in the Sun recently claimed that there are still plenty of investment opportunities for potential buyers in Australia.

Aussie homeowners adopt cautious view of property market

Wed, 25 May 2011 00:00:00 GMT

A new survey of Australian homeowners and investors has found that less than half of the country's population believe that now is a good time to buy real estate.

High living costs, interest rate rises and volatile prices are all weighing on potential buyers' minds and have helped to create a cautious environment.

The research, by Homeloans Ltd, comes after it was reported last week that house prices in Australia are falling.

Meanwhile, property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home.

This is according to Australian Property Monitors, which noted that in the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, the Australian reports.

It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods.

Brisbane is cheapest place to buy Australian property

Wed, 4 May 2011 00:00:00 GMT

Property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home, it has been revealed.

In the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, according to Australian Property Monitors, The Australian reports.

It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods.

Andrew Wilson, Australian Property Monitors senior economist, told the news provider that Brisbane is a housing market where confidence has been down for a while, with the Queensland economy underperforming for the past few years.

"When that happens, people aren't as keen to buy and on the other end sellers decide to hold on to their house and not to sell," he said.

"The floods in Brisbane were also a one-off factor in the March quarter, but I think their effect will be felt over the rest of the year."

House sales in Oz slowing

Fri, 8 Apr 2011 00:00:00 GMT

Property sales in Australia have petered off following their strong growth last year, the latest Housing Industry Association (HIA) figures have revealed.

Sales of new homes down under were almost static in February compared to the previous month, the statistics show.

The survey also found sales of homes in multi dwelling developments were down 7.6 per cent, while detached house sales rose 1.5 per cent.

HIA chief economist Harley Dale said the positive January figures had failed to extend to February, although detached house sales in Victoria went up by almost three per cent.

"At the very time when new home conditions need to be continually improving we are faced with compelling evidence of a considerably weaker 2011 compared to last year," Mr Dale said.

Meanwhile, a survey by National Australia Bank has found that house prices in Australia are forecast to grow by just 0.6 per cent over the course of this year.

According to the research, access to credit is currently the "biggest impediment" stopping people from buying homes and pushing prices back up.

Capital cities dominating investment in Oz

Thu, 10 Feb 2011 00:00:00 GMT

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.

Rate rises cooling property market down under

Mon, 7 Feb 2011 00:00:00 GMT

Interest rate rises in Australia are helping to cool the country's property market, after concerns were expressed about the danger of it over heating.

The National Australia Bank Residential Property Index for December fell to 27 points, down from 44 points in November

And many industry commentators and economists have claimed that the slowdown in growth is a sign that interest rates are contributing to cooling the market, those looking to buy property in Australia may be interested to learn.

"National house price expectations have now turned negative. Tight credit conditions and rising interest rates continue to be identified as the main impediments to new residential developments and existing property sales," a report from the bank said.

In total, there were four increases to the interest rate over the course of last year, rising from 3.75 per cent to its current level of 4.75 per cent.

A recent survey from the national bank shows that prices are expected to drop by 0.5 per cent in 2011.

Banks to control house prices down under

Wed, 2 Feb 2011 00:00:00 GMT

House prices in Australia will be constrained over the course of the coming year, as the Australian central bank takes charge of inflation worries.

In an attempt to cool the rapidly overheating real estate market, the bank put interest rates up in the country four times last year and they now stand at 4.75 per cent.

Despite these cooling tactics, the average price of a home in Sydney and Melbourne jumped up by 6.6 per cent and 8.4 per cent respectively over the past 12 months.

However, the latest figures from the Australian Bureau of Statistics are more promising with the body reporting that the Australian house price index only rose by 0.7 per cent in the December quarter.

The news is an indication that the cooling measures are starting to take hold of the Australian property market.

Macquarie economist Ben Dinte: "We expect house prices will continue to be constrained in the coming year because of the tightening bias exhibited by the RBA."

Indeed, that "tightening bias" is now weighing on house prices, said Mr Dinte.

Foreign buyers flock to Australian property market

Mon, 13 Dec 2010 00:00:00 GMT

An increasing number of foreign buyers are looking to buy property in Australia, it has been reported.

According to figures from the Real Estate Buyers Association of Australia (REBAA), foreign buyers purchased AUD 23.4 billion worth of property in Australia during the worst of the financial crisis during 2008/09, with Sydney in particular seeing high demand.

Purchases from people overseas amounted to 3,639 new and existing homes and 988 parcels of land.

REEBA says that agents have increasingly targeted foreign nationals as rising interest rates have priced many domestic buyers out of the mortgage market.

"We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK. They know the market is depressed and they are making huge capital gains and are reinvesting into the market," said Byron Rose, president of REBAA.

Australia's Housing Industry Association recently announced that high interest rates and difficulty in securing finance is leading to a falling number of new homes being built in the country.

Australian property market poised for growth

Thu, 14 Oct 2010 00:00:00 GMT

Strong growth will be seen in the residential real estate sector in Australia over the coming years, analysts have predicted.

Despite recent falls in the country’s property market, price increases are expected to be strong and steady going into 2012 and beyond, according to the QBE LMI Australian Housing Outlook report.

However, the growth is unlikely to be sustained across the country, with some regions, such as Perth, Sydney and Adelaide, clearly outperforming other destinations.

The Australian property market has long been regarded as one of the few around the world to have prospered during the economic downturn, although there have been concerns raised surrounding high interest rates and the ending of incentives for first-time buyers.

Indeed, international research firm IPD recently claimed that the real estate sector down under has clearly surpassed the rest of the world over the past decade.

To this end, IPD managing director for Australia and New Zealand, Anthony De Francesco, said the total return on Australian property had been more than five per cent.

Aussie real estate future looks bright, analysts claim

Fri, 24 Sep 2010 00:00:00 GMT

The future of the Australian real estate market looks bright analysts claim, despite a recent slowdown in demand.

Indeed, they point out that the slowdown has provided real estate investors looking at Australian property with the chance to pick and choose homes and is also encouraging first-time buyers back to the market.

"The fundamentals for property are still very strong, we have strong population growth and it is likely that with more certainty around interest rates, potential investors and home buyers will move back into the market place," said CommSec economist Savanth Sebastian.

Last week, the Reserve Bank of Australia decided to leave the official interest rate on hold at 4.5 per cent, following six rises in the past year.

However, Mr Sebastian added that any strengthening of the sector was unlikely to occur at the same pace as before.

"I don't see it surging back as it did with the stimulus, rather it would probably be a much more subdued recovery," he explained.

Australian property offering increased returns

Fri, 27 Aug 2010 00:00:00 GMT

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.

Australia property prices soar 20%

Fri, 13 Aug 2010 00:00:00 GMT

Residential property prices in Australia have increased by almost 20 per cent in the past 12 months, according to latest figures from the nation's Bureau of Statistics.

Quarterly growth to June stood at 3.1 per cent, while annually the increase reached 18.4 per cent.

Property investors may be interested to hear that Melbourne saw the most significant growth over the 12 months, at 24 per cent, followed by Sydney, Canberra and Darwin, reports Property Wire.

However, a slowdown is expected in the coming months, with the RP Data Index showing that average house prices had fallen slightly after 17 months of consecutive gains.

Last month, A Place in the Sun reported that property prices in some parts of Australia may be close to peaking and as such are likely to start falling soon.

It added that downward pressure will be placed on the market due to an increased number of properties becoming available for purchase.

Australia set for property setback as interest rates rise

Thu, 13 May 2010 00:00:00 GMT

Property prices in Australia could begin to fall as a result of a cut back in mortgage lending and rising interest rates, it has been suggested.

According to the country's largest real estate group, Ray White, turnover in the first quarter of 2010 has been slow in comparison to last year.

This is despite the country posting price rises of up to 20 per cent over the course of 2009.

Brian White, joint chairman of Ray White, explained that the poor results were continuing.

"Judging by our April results, it looks as if the interest rate increases are having an impact on activity," he said.

"With the additional interest rate hike, it would be the first time that the Australian market has not shrugged off the pattern of increases in the past."

However, earlier this year it was reported that the gap between supply and demand for property down under has risen by nearly 100 per cent over the course of the last 12 months.

Housing shortfall set to rise in Australia

Wed, 5 May 2010 00:00:00 GMT

Individuals looking to invest in property in Australia may be interested to hear that the gap between supply and demand has grown by nearly 100 per cent in the past year, Overseas Property Professional has reported.

According to a report by the National Housing Supply Council, in order to keep up with the high level of demand for property, new developments need to increase by over 30 per cent in the next 20 years.

The gap between supply and demand in Australia grew by 99,500 properties during 2008 to 178,400 the following year.

Among the worst affected areas include New South Wales and Queensland, which have shortfalls of approximately 60,000 each.

Earlier this year, experts predicted that the lack of property on the Australian market would contribute towards an increase in house values in the country.

A rising population and lack of new builds are being cited as the reasons behind the crisis, while the National Housing Supply Council report highlighted the length of time that greenfield developments are taking to complete as a hindrance to recovery.

Australia's housing market is 'strongest since 2003'

Mon, 1 Feb 2010 00:00:00 GMT

According to new research, annual real estate growth in Australia is at its strongest since 2003.

Investors in the country may wish to know that Australian Property Monitors (APM) reported that house prices rose by 12.1 per cent over the course of the year.

It is believed that this growth was driven in the early part of the year by an increase in first-time buyers and sustained by overseas investors towards the end.

APM's economist Mathew Bell commented on the findings, highlighting the fact that median house prices had surpassed pre-global financial crisis highs in December in Sydney, Brisbane, Adelaide and Perth.

He added: "The December quarter was a surprise. There is an indication that not only was there a general price rise, but the more expensive properties were selling as well."

Moderate price increases were expected across all sectors during the first half of the coming year but the medium to long-term outlook for property prices would remain strong.

Former Take That boyband member Robbie Williams joined the rising number of Brit's buying property in the country earlier this year.

Australian property is affordable, says expert

Wed, 9 Dec 2009 00:00:00 GMT

Australian property is still affordable despite recent price rises, an expert has said.

The Business Spectator's economics blogger Christopher Joye commented that those who have argued housing is becoming too expensive in the country are incorrect.

He noted as evidence for his view the fact that homeownership is relatively high at around 70 per cent and that mortgage default rates are among the lowest in the world.

Based on long-term data using the Reserve Bank of Australia's methods of calculating affordability, Mr Joye stated that the current level of housing cost is around the average for the past 28 years.

Rising prices should also not be expected if the market were overpriced, he added.

Such considerations may interest those thinking of buying property in Australia.

Recent price trends have shown significant increases in the value of property in the country, with the RP Data Rismark Survey revealing that there was a 1.4 per cent jump in October.

Australian economy 'improving faster than expected'

Tue, 3 Nov 2009 00:00:00 GMT

An Australian government minister has said the country's economy is improving faster than predicted at the time of the last budget, something that may help boost the country's property market.

Treasury minister Wayne Swan said the figures in the Mid-Year Economic and Fiscal Outlook showed that the prospects for economic growth, employment levels and public debt have all got better.

Such an outlook "underscores Australia's position as the strongest performing advanced economy in the world", he said.

This will see economic growth of 1.5 per cent in this financial year and 2.5 per cent expansion in 2010-11, Mr Swan predicted.

People thinking of investing in property in Australia may be encouraged by the way the country has come through the downturn and is facing the future with optimism.

Last week, figures from Australian Property Monitors revealed that in the three months to September, the average house price in a state or territory capital city rose by 3.7 per cent, while units were up by 3.4 per cent.

Western Australia 'to see new boom'

Thu, 29 Oct 2009 00:00:00 GMT

The economic prospects for Western Australia are looking up again, it has been claimed, something that could boost property prices there.

Speaking about the mood a year ago when the financial crisis was at its worst, professor of economic policy at Curtin University in Perth Peter Kenyon said there was much "doom and gloom", the Daily Telegraph reports.

He added: "Everybody was talking about it being worse than the Great Depression, but consumer confidence is back, business confidence is back and interstate and overseas migration continues."

Professor Kenyon highlighted mining as being a major source of growth in the state, with base metals rising in price again.

State capital Perth is now seeing house prices increasing for the first time in 18 months, the paper noted.

The Australian property market will benefit from the extra stability provide by this month's 0.25 per cent increase in the cash rate by the Reserve Bank of Australia, Brian White, the chairman of real estate firm Ray White, said recently.

Base rate rise 'will stabilise Australian property market'

Thu, 22 Oct 2009 00:00:00 GMT

Australia's property market will benefit in the longer run from the recent interest rate rise, it has been claimed.

Brian White, the chairman of real estate firm Ray White, said the decision of the Reserve Bank of Australia (RBA) to hiked the Cash Rate from three per cent to 3.25 per cent will help to stabilise the sector.

He remarked: "There's nothing worse than a market getting out of control and the residential market has been remarkably strong over the last four or five months."

A stable situation may help the Australian real estate market to grow gradually without a boom-and-bust scenario arising, something that could encourage those keen to invest in the country.

In the minutes of this month's board meeting released yesterday, the RBA said it had raised the interest rate partly because a "sizeable gap" has emerged between its relatively strong performance and the weaker ones of other developed countries.

Australian prices 'to go on rising'

Fri, 16 Oct 2009 00:00:00 GMT

The recent interest rate rise in Australia will not stop a rise in house prices, it has been argued.

In an article on the issue, the Australian newspaper noted that a recent survey of consumer sentiment saw 74 per cent of people expecting values to increase, up from 53 per cent in May.

The publication suggested that the RP Data-Rismark capital city home price index figure for August of a 1.9 per cent jump is unlikely to be sustained, but argued that there are underlying factors that will be decisive in raising the cost of housing over the long term.

Growth in gross domestic product, a rapid population increase and a lack of new homes being built will all contribute to this, it argued.

Australia's cash rate was increased from three per cent to 3.25 per cent earlier this month.

However, this is still low compared to recent history, with the figure being as high as 7.25 per cent before September 2008.

Population boom 'to fuel Australia's housing growth'

Sat, 26 Sep 2009 00:00:00 GMT

Australia is set to see significant economic and housing market expansion for years to come as a result of a population boom, it has been claimed.

The country saw a 2.1 per cent rise in its population in the year to March, official figures have revealed, the fastest on record and the largest current growth rate of an advanced economy, Reuters reports.

Such a trend could see a 60 per cent population increase in the population over four years and chief economist at CommSec James Craig said this would directly impact on the property sector.

He stated: "More people translates to increased spending and demand for homes and as a result, increased momentum for our economy."

Such a situation could mean those who buy homes in Australia find the price gradually rising, particularly if the increase in supply fails to keep up with demand.

Australia is the most popular choice for Britons keen to move abroad to work, a recent survey showed.

Money exchange firm Foreign Currency Direct established that 20 per cent of those thinking of seeking a job overseas would prefer the country to any other.

Sales surge in Australian state

Thu, 24 Sep 2009 00:00:00 GMT

Sales of land and residential properties in the Australian state of New South Wales saw a year-on-year jump of over a quarter in July and August, its government has said.

The period witnessed a 25.5 per cent increase on the same two months in 2008 and the treasurer of the state Eric Roozendal remarked that this was particularly encouraging in view of the fact that winter is normally a slow time for transactions.

He also suggested it was a good sign of economic recovery for New South Wales.

Such a trend may encourage those keen on buying in Sydney or other places in the state, which is the most populous in the country.

Earlier this week, the Real Estate Institute of New South Wales noted that prices have been rising in the cities of Sydney, Newcastle and Woollongong.

President of the body Steve Martin remarked that in the three months to June the median house price in Sydney rose by 3.02 per cent.

'One in four' Britons looking at jobs overseas

Fri, 18 Sep 2009 00:00:00 GMT

A large proportion of the UK workforce is thinking of getting a job overseas, new figures have revealed.

Foreign Currency Direct surveyed 2,000 adults and found that 23 per cent of them - the equivalent to 11 million of the British workforce - are thinking of seeking work abroad in the next two years.

While 25 per cent of these were in the 18-30 age range, ten per cent of those aged 51 to 60 would also look to take a job abroad.

Of the places people would move to, the most popular destination was Australia, as the preferred location for 20 per cent of respondents, followed by the US on 16 per cent and New Zealand on ten per cent.

Fifth-placed Spain was the highest-ranked non-English speaking country at seven per cent.

The popularity of Australia may be partly down to its upbeat economic outlook.

Minutes of the monetary policy meeting of the board of the Reserve Bank of Australia published this week stated that the last month's economic data for the country had been "mostly positive".

It noted that the greatest growth in the global economy is currently being seen in Asia, where Australia's largest trading partners are.

Australia sees rise in economic growth

Fri, 4 Sep 2009 00:00:00 GMT

Australia has seen its level of gross domestic product increase, something that may help provide a further boost to the property sector in the country.

Official figures have revealed that in the second quarter of this year the economy grew by 0.6 per cent, compared with 0.4 per cent in the first quarter.

Citi Group economist Joshua Williamson told ABC News Online that this was a much better outcome than had been expected by analysts, who had forecast a 0.2 per cent increase.

Mr Williamson said low interest rates and government stimulus action had been major factors, adding the caveat that the effect of these may wear off slightly.

However, he added: "It's clear that the Australian economy had probably much more momentum than we previously thought in half one and [it] goes into the second half of this year with that greater momentum and higher levels of confidence."

As the economy recovers in Australia, evidence appears to be emerging of a revival in the property market.

The Global Property Guide said last week that the country had seen a 3.73 per cent rise in house values over the course of the past three months.

Gold Coast property market 'to make a strong recovery'

Tue, 4 Aug 2009 00:00:00 GMT

The property market on the Gold Coast will make the strongest recovery out of all the major cities in Australia, it has been suggested.

According to estate agency Ray White Surfers Paradise, confidence in the housing sector in the region has increased in the first half of 2009, something that may interest those looking to make property investments in Australia.

Chief executive officer of the firm Andrew Bell noted that interest in homes for investment and leisure purposes is strong from within Australia and overseas.

"Volumes certainly aren't what they were at the market's peak but properties are still steadily changing hands at the right price," he remarked.

The property company noted that the Gold Coast's population could reach 1.2 million by 2050.

Last week the governor of the Reserve Bank of Australia Glenn Stevens said the supply of property in the country should be increased in order to prevent a housing bubble occurring.

Emigrants tempted by Australia prospects

Tue, 30 Jun 2009 00:00:00 GMT

Those thinking of buying a new home in Australia may include many Britons who have decided to escape the recession for a new life down under, it has been stated.

In a Guardian feature on emigration, property businessman Tony Mercer stated that his family's move from the Wirral to the country - with their city of choice being South Australian capital Adelaide - should see better rewards for the effort they will put in.

"My expectation is that Australia is a land of opportunities where hard work will be recognised in a way that I think it is taken for granted here," he commented.

The paper noted that South Australia has been the best-performing state economy in the country.

People who buy in Adelaide should see their house prices rise substantially, according to recent research.

The BIS Schrapnel Residential Property Prospects report predicted that the next three years could see homes there rise in value by as much as 19 per cent.

Australian state's stamp duty plan welcomed

Wed, 17 Jun 2009 00:00:00 GMT

A halving of stamp duty on new-build homes worth less than AUD600,000 (GBP292,000) is likely to provide a major boost to the property sector in the Australian state of New South Wales, it has been predicted.

Worth an average AUD11,245 per home, the cut will help bolster investment in property across the state - which includes the country's largest city Sydney - and will in turn help stimulate home building, the state government's treasurer Eric Roozendaal has predicted.

Such a measure may tempt those thinking of buying property in Sydney or elsewhere in the state to consider a new house purchase and make the most of the saving available.

The city is likely to see its house prices rise by up to 19 per cent in the next three years, according to a report produced this week by BIS Schrapnel.

It's Residential Property Prospects report predicted that a combination of grant aid to first-time buyers in the near term and then low interest rates after that will help prices in major cities to boom.

It tipped Melbourne and Adelaide to also see large price rises.

Schrapnel tips Australian market to explode

Tue, 16 Jun 2009 00:00:00 GMT

Australia's property sector could be set for rapid price growth in the next three years, a new report has predicted.

The BIS Residential Property Prospects report forecasted that state capitals around the country will see significant price rises initially boosted by grant-aided first-time buyers, but then sustained by other factors such as low interest rates.

It said this would lead to cities such as Melbourne, Sydney and Adelaide enjoying price rises of as much as 19 per cent during the period.

Such a prospect may tempt investors to consider buying property in Australia.

Those looking at the South Australian capital Adelaide may wish to note a forthcoming list of its most liveable suburbs to be compiled by demographer Bernard Salt and published by the Sunday Mail.

Mr Salt told the paper that the south of the city has advanced significantly in the last ten years and the central business district has seen the development of new apartments.

Australian property demand tipped to grow

Thu, 4 Jun 2009 00:00:00 GMT

Demand for Australian property among foreign investors is growing and set to rise further, it has been predicted.

Malaysian estate agency Jalin Realty International has said the level of demand is high, with chief executive Ian Chen telling Star Biz: "We are definitely getting a lot of enquiries."

He added that the weakness of the Australian Dollar against the Malaysian Ringitt is helping to attract buyers from the latter country, although the paper also noted that an agent from Australian property firm LJ Hooker stated: "The bulk of the foreigners buying Australian properties is from Britain."

The agent said Victoria is the most popular location because of the level of state aid for first-time buyers and lower stamp duty charges for off-plan buyers.

Positive signs in the Australian property market include figures from the Housing Industry Association that there was a 0.5 per cent increase in the number of new homes being bought in April compared to March, with this figure 22 per cent higher than its floor level in December.

Australia sees new homes sales rise

Tue, 2 Jun 2009 00:00:00 GMT

Sales of new homes in Australia have risen again, new research has shown.

Figures from the Housing Industry Association (HIA) revealed that the number of new homes being bought in April jumped 0.5 per cent on March, with detached homes up 1.1 per cent.

This is the latest in a series of increases in such sales that has seen the number being bought increasing 22 per cent since it hit a floor in December last year.

Commenting on the situation, HIA chief economist Dr Harley Dale said: "The leading indicators point to housing as an emerging bright spot in the economy."

The HIA said the introduction of the AUD21,000 first home boost in the last budget - a measure aimed at helping first-time buyers - was a major factor in bolstering the market.

Such a development could mean that the Australian property sector is set to improve, which may offer some good investment prospects.

Another positive factor could be the longer-term economic outlook.

In a speech in April this year, governor of the Reserve Bank of Australia Glenn Stevens said recent research had shown that consumers in the country remained as optimistic about the prospects for the economy five years hence as they had before the economic crisis.

Australia property showing contrasting fortunes, central bank notes

Fri, 22 May 2009 00:00:00 GMT

Members of the Reserve Bank of Australia have noted that the Australian property market is showing mixed fortunes.

Minutes of this month's monetary policy meeting - in which the main cash rate was held - revealed that housing transactions and new building had increased during March, although at the same time ABS data had indicated a fall in prices.

However, it also noted that "while house prices in the most expensive suburbs had fallen significantly over the past year, prices in the least expensive suburbs had risen recently".

Such a difference may mean that those looking to buy property in the country might wish to consider checking the differing trends for prices depending on the location within each town or city they are considering.

Differing trends between cities were also revealed earlier this year in the RP Data-Rismark Hedonic Property Index for the first two months of 2009.

These showed a 1.9 per cent rise during the period in Melbourne and a 0.5 per cent increase in Sydney.

In contrast, there were declines in Adelaide, Perth, Brisbane and Canberra.

Australian home prices hailed

Mon, 27 Apr 2009 00:00:00 GMT

Australian homes offer some favourable prices for British investors, it has been stated.

The Daily Mail reported that Perth, Brisbane and Adelaide are all reasonably priced, with the latter having the cheapest homes at an average sale price of GBP183,000, compared with GBP192,000 in Melbourne.

In addition to this, the paper noted, the country can offer a sunny, outdoor lifestyle with which the UK cannot compete, due to its latitude, as well as better economic prospects.

A recent survey of Australian housing trends predicted that the level of prices in the country will be stagnant for the rest of this year, but will start to increase from 2010 with Sydney the first city to start growing again.

The Australian Property Institute study suggested the country's largest centre of population would see this improvement early next year, ahead of locations like Brisbane and Melbourne.