Market flat until 2011, says RP Data

By |

Australian property is unlikely to see significant capital growth until next year, according to the latest RP Data/Rismark projections.

Rismark managing director Christopher Joye commented that the market is likely to remain flat for the rest of 2010 - and could even decline if interest rates start rising.

"Following hawkish RBA remarks, economists are now predicting we'll get four to six cash rate hikes," said Joye. "If the resources boom combined with frisky consumer spending compel the RBA to lift the csah rate four to six times by end 2011, we would expect to see nominal dwelling values decline modestly."

He added that, in the five instances since 1993 when the RBA has lifted the cash rate sharply, national capital city dwelling prices have flatlined or declined.

"If the RBA raises rates, there is no reason to expect 2010-11 to be any different," concluded Joye

Even so, he cautioned borrowers to be prepared to service rates that are up to 1.5% higher than what they may currently be paying on their mortgage.

The RP Data-Rismark figures for August show an overall seasonally-adjusted decline of 0.2%, while regional markets remained flat. Canberra dwelling prices saw the largest growth during the month, increasing by 1.2%, while Sydney showed minimal growth of 1.2%. Property values in Perth suffered most in August, with RP Data recording a fall in median values of 4.8%.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : north lambton , upper kedron , westmead , hebersham , st kilda west

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here