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UBS: 2013 could bring a housing boom

Bank UBS has suggested some regions in Australia could see significant house price rises this year.
<p $$hash="11226-0"><span $$hash="11248-0">Sydney and Western Australia could see as much as a ten per cent increase in house prices according to predictions from UBS.

<p $$hash="11239-0"><span $$hash="11238-0">The investment bank believes there will be a new housing boom in the regions,  Australian reported, however it may not be all good news.

<p $$hash="11224-0"><span $$hash="11225-0">There have been warnings that any large increases in property values would be “undesirable and dangerous”, with the potential to cause the Reserve Bank of Australia to increase interest rates.

<p $$hash="11250-0"><span $$hash="11249-0">The regions have already seen a small house price increases, with a 3.4 per cent rise in Syndey and 4.3 per cent jump in Perth.

<p $$hash="11252-0"><span $$hash="11251-0">"If house price inflation continues in coming months it is possible that Sydney and Perth may show rolling 12-month house price growth of around 10 per cent by May,” a UBS analyst told the source.

<p $$hash="11254-0"><span $$hash="11253-0">"Given Australian housing is already expensive by most measures, we see this as undesirable and dangerous."

<p $$hash="11256-0"><span $$hash="11255-0">House prices in the south have also seen a lift of around four per cent, according to the Real Estate Institute of South Australia.

Posted by Craig Francis

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