House prices across the nation could jump by as much as 12 percent this year, experts have predicted.
Average property prices have already risen by 4 percent in 2009 according to latest data, and improving affordability, population growth and increased demand will add a further 5-8 percent to prices this year, according to one economist.
Prices have risen in every capital city across Australia except Perth, the monthly RP Data-Rismark Index found.
Darwin and Melbourne enjoyed the largest rebound, with average prices up 5.5 percent and 6.1 percent
respectively, in the five months to the end of May.
Meanwhile, average values were up 5.2 percent in Sydney, 2.6 percent in Brisbane, 2.1 percent in Canberra and 0.5
percent in Adelaide. Perth however, suffered a 0.5 percent slide in average values over the first five months of the
year.
While many industry experts have been reluctant to call a recovery in the market, Rismark said 'green shoots' were
evident in the market in February. "These latest results herald a national residential market recovery", the group’s
head of research Tim Lawless said.
Craig James, chief economist at CommSec, said Australia could rightly claim the title of 'wonder from Down Under'
as prices continue to rise.
"It is a simple case of supply and demand," he said. "Demand for homes is being spurred by improved affordability,
the fastest population growth in 40 years and weak returns on other assets."
The climb in prices should boost activity in the market, Mr James told ninemsn, helping to push prices between 5
and 8 percent higher from now until the end of the year.
This booster will shield the market from slipping when the first home buyers' grant is wound down in the second half
of 2009, Mr James added.
Rismark's managing director Christopher Joye said the recovery has proved key to economic confidence so far this
year.
"The recovery in Australia’s housing market, which has defied countless doomsayers, has in turn been the
cornerstone of the Australian economy's stability in 2009," he said.
"The robust rise in Australian home values this year has given builders and developers confidence to hire labour and
buy materials to invest in new homes."
The average property price now stands at $468,819 – just 0.1 percent shy of the peak in February 2008. The
average house price comes in at $495,287, while flats are currently at a record average of $403,186 across the
country.
Meanwhile rental returns have jumped by 6.5 percent over the past year – the fastest pace in 10 months.
The news follows reports from ANZ last week that confidence in the property market is "returning in spades".
Average property prices have already risen by 4 percent in 2009 according to latest data, and improving affordability, population growth and increased demand will add a further 5-8 percent to prices this year, according to one economist.
Prices have risen in every capital city across Australia except Perth, the monthly RP Data-Rismark Index found.
Darwin and Melbourne enjoyed the largest rebound, with average prices up 5.5 percent and 6.1 percent
respectively, in the five months to the end of May.
Meanwhile, average values were up 5.2 percent in Sydney, 2.6 percent in Brisbane, 2.1 percent in Canberra and 0.5
percent in Adelaide. Perth however, suffered a 0.5 percent slide in average values over the first five months of the
year.
While many industry experts have been reluctant to call a recovery in the market, Rismark said 'green shoots' were
evident in the market in February. "These latest results herald a national residential market recovery", the group’s
head of research Tim Lawless said.
Craig James, chief economist at CommSec, said Australia could rightly claim the title of 'wonder from Down Under'
as prices continue to rise.
"It is a simple case of supply and demand," he said. "Demand for homes is being spurred by improved affordability,
the fastest population growth in 40 years and weak returns on other assets."
The climb in prices should boost activity in the market, Mr James told ninemsn, helping to push prices between 5
and 8 percent higher from now until the end of the year.
This booster will shield the market from slipping when the first home buyers' grant is wound down in the second half
of 2009, Mr James added.
Rismark's managing director Christopher Joye said the recovery has proved key to economic confidence so far this
year.
"The recovery in Australia’s housing market, which has defied countless doomsayers, has in turn been the
cornerstone of the Australian economy's stability in 2009," he said.
"The robust rise in Australian home values this year has given builders and developers confidence to hire labour and
buy materials to invest in new homes."
The average property price now stands at $468,819 – just 0.1 percent shy of the peak in February 2008. The
average house price comes in at $495,287, while flats are currently at a record average of $403,186 across the
country.
Meanwhile rental returns have jumped by 6.5 percent over the past year – the fastest pace in 10 months.
The news follows reports from ANZ last week that confidence in the property market is "returning in spades".
