Slowdown in Australian property market allays fears of bubble forming

News that the Australian property market is showing signs of slowing has been welcomed by many real estate commentators.

According to the latest figures from the DP data-Rismark Hedonic Home Value Index, price rises in major cities down under are slowing and the number of new properties being sold has reached a three-month low.

The slowdown has been generally met with relief by many industry experts who feared that the country could be heading towards a property bubble.

House values in Australia rose by only 0.5 per cent during May and this follows 16 months of strong price growth, with year-on-year prices in capital cities up by 12.1 per cent.

"This second consecutive month of single digit annualised gains sends a signal that the double digit growth rates recorded since January 2009 are behind us," said, RP Data's director of research, Tim Lawless.

Australia was ranked fourth on the Global Property Guide's list of worldwide markets posting the strongest price increases.

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