The price of property in Australia may be growing at a slow rate, but it is increasing nonetheless.
This is according to Real Estate Institute of Australia president David Airey, who appeared on ABC's Business Lateline on Monday (April18th).
"It is important to understand that house prices, whilst increasing over time, have periods when price growth either subsides or decreases, however, over time the fundamentals are there for continued growth," he said.
Mr Airey went on to say that this growth is caused by lack of new housing, population growth and changes in the household formation rate.
He went on to say that the recent slowdown in housing price growth is attributable to a number of factors, including interest rate increases.
Earlier this month, Peter Jones, chief economist at Master Builders Australia, said that freezing interest rates would allow more building work to commence in the country.
He said this would also increase people's confidence in the Australian property market.
Posted by Steve Douglas
