First-time buyers 'boosting Australian property market'

The increase in the number of first-time buyers in Australia promises to help the market grow, it has been predicted.

Figures for auctions in the country have shown that sales rates are still over 70 per cent, according to Australian Property Monitors.

First-time buyer numbers are increasing due to government grants to help them get on the ladder and according to forecasting firm BIS Shrapnel these will rise by as much as 17,000 in each of the next five months.

Managing director of the company Robert Mellor suggested this will lead to a four per cent increase in prices in 2010.

Such a situation may encourage those investing in property in the country.

Writing in the Australian newspaper last month, BIS Shrapnel's chief economist Frank Gelber predicted that there is likely to be a slow recovery at first, followed by a housing boom four years from now after the economy picks up pace.

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