Prices Soar As Property Supply Drops

A recent report from the CBA Global Markets Research reveals that prices are still on an upward trend with high investor demand. As of March 2013, house prices in the country rose by 10.7% (units at a 9.6% increase) from the same time the previous year. This recorded growth was the highest for the past decade, with Sydney leading growth with a prices increasing by 15.6% followed by Melbourne at an 11.6% increase.

One of the contributing factor for the high demand is the growing population in the country, nearing the highest recorded in a 40 year span. The RBA’s initiative to stimulate the property market by keeping the official cash rate at record low levels have resulted to high housing activity, new constructions and increase in property purchases.

Read more about this on the Adviser website.