Schrapnel tips Australian market to explode

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.