The House Market Outlook Stays Positive
Even though we have now experienced two rate increases, with more expected, the Australian Residential Property Planners (ARPP) expect that house prices in the largest cities may increase as much as 20% over the next three years.
The reasoning behind this is that throughout Australia there is still a shortage of residential property in the market. Over recent times new dwelling commencements dropped (a 36% drop) and it will take some time for new dwellings to come back on stream.
An interesting statement made by ARPP is:
“Prepared by real estate industry research group BIS Shrapnel, the report predicts Perth and Canberra, which have both seen huge rises in home values in the past, will see only a 12 per cent rise during the three year period.
Brisbane and Hobart can expect around 15 per cent increase in value.
Melbourne’s house prices were expected to grow by 19 per cent, and Adelaide house prices were predicted to increase by 23 per cent.”
There were four cities that had median house price increases over the last 10 years over 100%. Perth was 211%, Hobart 203%, Brisbane 202% and Melbourne with 116%.
These are massive increases in anybody’s terms and certainly were excellent equity increases for any property investor.
Due to the shortage of dwelling stock which will continue well into 2010 it would probably be fair to say that rental rates should not drop any further in the near future or if they do, only minimally.
Filed Under: Property News
About the Author: 
