Property prices in Australia expected to fall

The property prices in some parts of Australia may be close to peaking, indicating that prices are set to fall.

Downward pressure is likely to be placed on areas of the country due to a dramatic increase in the number of houses coming on to the market, A Place in the Sun reported.

In the past year, a double-digit rise in residential prices has meant that some would-be buyers hoping to emigrate from the UK to Australia have been unable to afford property there.

However, if Australian property prices were to fall and housing stock for sale increase this would open up more choice for homebuyers.

According to advisory and forecasting firm SQM Research, around 35,000 homes in Melbourne will be advertised for sale in December.

The Economist magazine's latest survey of global housing reported that Australian property was overvalued by 61 per cent based on the current ratio of house prices-to-rents and historic ratios.

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