Australian Property Monitors believes that the Australian property market will return to growth in the second half of the year.
The group's latest Quarterly Housing Report argues that growth is likely to return by mid-year, especially in Sydney. APM believes that, despite the the decline in buyer activity that accelerated during 2010, the fundamentals of the property market remain sound. A strong economy, rising incomes and an ongoing housing shortage are among the key factors that will drvie the recovery.
“2011 will be a year of stabilisation and modest growth for most capital city housing markets, with Sydney in particular expected to lead, particularly in the mid-range and top ends of the market,” APM senior economist Andrew Wilson said.
The predictions follow a flat December quarter, with APM's data recording national growth of 0.7% for houses and a 0.8% fall in unit prices overall. This put growth for the year at a modest 6%.
“The softening of price growth in the December quarter reflects the continued decline in buyer activity throughout 2010, coupled with a high number of properties listed by years-end as vendors attempted to take advantage of previously strong selling conditions,” added Wilson.
Over the last quarter, Hobart and Melbourne showed the most robust growth for houses at 2.6% and 2.1% respectively. UNits, meanwhile, performed best in Darwin, with 15.8% quarter-on-quarter growth for units in the northernmost capital. The biggest price fall for houses was in Perth at -1.5% and in Hobart for units, at -9.6%.
Melbourne led national growth for the year with a 14% increase in house prices and 7% growth for units.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
tweed heads south
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.
We value your privacy and treat all your information seriously - you can check out