This article is from the Australian Property Journal archive
AUSTRALIA'S house prices are expected to rise marginally by just 0.6% in 2011, according to the National Australia Bank March residential property index.
However that is a positive outlook compared to the bank’s previous forecast of a 0.5% decline made in December.
The survey respondents expect Western Australia to record the biggest house prices gain, which is a modest 1.1% in the next year, followed by NSW and the ACT with up 0.9%
Queensland house prices are forecast to rise by 0.1% which is a turnaround as opposed to a forecast 1.7% decline in December.
The survey is slightly more positive over the next two years, house prices are expected to rise by 2.6% with WA to outperform with a 3.8% increase.
However Victoria and Tasmania house prices are forecast to fall by 1.6%.
Meanwhile the Reserve Bank left interest rates unchanged yesterday at 4.75%, which was welcomed by the residential property market.
Mortgage broker Loan Market chief operating officer Dean Rushton said there is no reason for the RBA to act this year as the four rates rises they implemented in 2010 are still having an impact through much of the economy.
“There have been some major business failures recently and if you walk through any suburban shopping centre or retail strip you will see shops that have closed down.
“Consumer sentiment remains soft and many elements of the economy, including the home finance market, continue to lag. The last thing they need now and in the foreseeable future is for interest rates to go up,” Rushton said.
Australian Property Journal
