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Australian property market wide...

Australian property market widens

It seems that Australia's previously high-earning mining industry has become less profitable, which is seeing the property market boom in other areas of the country.

Australia is currently a product of two-speed economy, which is responsible for the flourishing property sales in Sydney and Melbourne, reports The Australian.

It seems that Australians and others who live in the country are moving "where the work is, and that's what's driving movement into Sydney and Melbourne… and when you see that sustained population growth, prices follow," says BIS Shrapnel economist Robert Mellor.

Experts in the economy and in the property industry in Australia are saying that sustained population growth is expected to stretch the recent prices that property in Sydney and Melbourne has been experiencing, which marks a positive start to the year for these cities.

Although there was some dispute throughout the latter end of last year about whether or not house prices would fall throughout Sydney and Melbourne, the reality is that it isn't likely to have a noticeable effect. Similarly, experts are also saying that even if the house prices do fall slightly, it's unlikely to affect many areas throughout these two cities.

The good news for those who are looking for cheap property for sale in Australia is that mining areas such as Mackay, Townsville and outback Western Australia are now excellent places to buy as the market has liquidated somewhat.

This isn't great news for those who originally bought in the areas when the mining industry was flourishing as most are now likely to be selling at a loss, but those wanting to buy an affordable family-friendly house in these areas will be very pleased.

Commodity prices have a massive effect on the Australian property market according to property agents, which has a knock-on effect to employment prospects and so following on whether or not the property market price grows.

Although this doesn't sound particularly appealing, the sheer size of Australia and its possibilities for fluctuating industries mean that there is always an area of property market growth in the country.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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