Property values in Australia have fallen for five consecutive quarters, data from Australian Property Monitors (APM) shows. The slide of the country's housing market may attract the attention of investors from overseas, especially those in Europe who are dealing with their own economic turmoil. So, is the time right to plough your money into Australian real estate? Chief executive officer of the Association of International Property Professionals (AIPP) Professor Mark Sharp thinks it is. "Now is a good time when interest rates remain low and property prices are not rising as far as they were. In particular, urban areas and city centres remain buoyant," he stated.
In terms of the best locations for investors hoping to snap up a real estate deal, it appears that Brisbane could be leading the pack. APM figures show that the city is now the cheapest state capital on the mainland, with the average value of a home standing at AUD 429,339 (GBP 270,586) in September. Year-on-year, this represents a fall of 6.7 per cent. Across the country, house prices dropped by 3.5 per cent in this period.
Commenting on the future outlook, APM senior economist Dr Andrew Wilson noted that things may improve next year. "The prospect still remains of ongoing economic growth in Australia, particularly in those states exposed to the resource sector, with modest property price growth expected to resume in some capital cities through the first quarter of 2012," he asserted.
Meanwhile, a recent report published by the Mortgage and Finance Association of Australia found that worries over the state of the country's economy are holding domestic buyers back, rather than access to finance. Phil Naylor, chief executive of the organisation, acknowledged this pessimism, but highlighted the increasing levels of savings in Australia. He suggested that this will put potential buyers in a good position when confidence returns to the housing sector.
- Wednesday 23 November 2011