Australian property market 'to start recovery'

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.