Wednesday, 12 December 2012

Property market ready for take-off

BRISBANE house prices are set to rise 3 to 5 per cent next year as increased affordability and interest rate cuts entice buyers into the market, according to the latest property research.

A snapshot of the national property sector shows prices dipped in the three months to the end of September, but remained unchanged over the year.

The Bendigo Bank/Real Estate Institute of Australia real estate market report found the weighted average median house price for capital cities fell 0.6 per cent in the September quarter, compared to the June quarter.

However, the average price for other dwellings, including apartments, rose 1.2 per cent.

The median house price in Brisbane fell 0.7 per cent to $430,000, but for all other dwellings it was up 0.6 per cent to $378,666.

REIA president Peter Bushby said prices were expected to improve in 2013.

"We expect to see increased growth in the market based on improving affordability, coupled with recent interest rate reductions," he said.

"The rate cuts were a step in the right direction, and should encourage investors to start looking at investment properties."

A strong demand for rental properties would be encouraging for would-be investors, while buying a home would also become more attractive thanks to increased affordability, Mr Bushby said.

Australian Property Monitors agreed next year should be a good one for the market.

"Overall markets have stepped forward modestly into recovery in 2012 with the prospect of this trend continuing in most capital cities," APM senior economist Andrew Wilson said.

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