Australian Property Prices

While housing prices in the majority of the world’s developed economies continue to fall or stabilise, Australia’s property prices continue to buck the trend and strengthen. This is both a positive reflection of our robust economy and a signal that Australia has a growing and well-off population. With such a significant surge in property prices over the past decade, many people are wondering what is going to happen to the property market next?

Firstly, it’s worth pointing out that there are those who think Australian property prices are a little over valued. The International Monetary Fund, for example, in their latest World Economic Outlook report hinted that Australia could be facing a property bubble as housing prices have become unaffordable.

Others however, are worried about the exact opposite scenario, with predictions of a property shortage that would drive prices quickly upwards. As Australia’s population has grown over the past couple of years, there are concerns there are more cashed-up buyers than there are available properties. What's more, there is also the added concern that foreign investment is adding to the housing shortage problem.

Finally, there are a third group who believe the local housing market will cool slightly after almost a decade of significant increases. While the country is unlikely to see the soaring capital gains of 50 percent over two years experienced around 2003 in marks such as Sydney, purchases in the right areas will still yield modest returns. BIS Shrapnel, respected property forecasters, have recently predicted home price increases of about 20 per cent on average in places like Sydney, Perth and Adelaide through to 2013.

With all the conflicting opinions buzzing around there are still a few things we know for sure. Buying property is still viewed as a significant step in any Australian’s life and partnering with the right financial institution is vital to ensuring you get the best deal. We’ve got a range of options to suit your needs and because we’re member owned – we’re here to ensure you get the best advice possible.