Australian property price growth is set to slow because of rising interest rates and the phase-out of the First Home Owner Grant scheme.
The Australian Property Monitors group released figures which showed that the national media property price rose 3.1 per cent to a record AUS$542,800 (£330,407) in the March quarter.
However, this was compared with a 4.8 per cent increase in the final three months of 2009 which took the media price to AUS$535,524.
Matt Bell, an economist for the Australian Property Monitors, said: "House price growth in the March quarter slowed across the country as five interest rate rises and the expiry of the First Home Owner Boost began to impact prices."
Furthermore, the Reserve Bank is set to rise rates from 4.25 per cent to 4.5 per cent next week in a bid to curb rising inflation.
Justin Smirk, chief economist for St George, told the AAP that following the recovery from the economic downturn, inflation was at a "much higher rate".
Posted by Craig Francis
The Australian Property Monitors group released figures which showed that the national media property price rose 3.1 per cent to a record AUS$542,800 (£330,407) in the March quarter.
However, this was compared with a 4.8 per cent increase in the final three months of 2009 which took the media price to AUS$535,524.
Matt Bell, an economist for the Australian Property Monitors, said: "House price growth in the March quarter slowed across the country as five interest rate rises and the expiry of the First Home Owner Boost began to impact prices."
Furthermore, the Reserve Bank is set to rise rates from 4.25 per cent to 4.5 per cent next week in a bid to curb rising inflation.
Justin Smirk, chief economist for St George, told the AAP that following the recovery from the economic downturn, inflation was at a "much higher rate".
Posted by Craig Francis
