First-home buyers boost Australian property market
Friday, 3 Aug 2012
The Australian property market saw house prices increase in the quarter through to June, with one expert noting an obvious rise in first-time buyers.
Official figures from the Australian Bureau of Statistics showed the weighted average of values for established homes in eight major cities in the country edged forward 0.5 per cent.
Janu Chan, an economist at St George Bank in Sydney, told Bloomberg that borrowing rates have slipped below the typical level, encouraging demand among potential purchasers.
He said: "There has been a pickup in the number of first-home buyers and that's important in a recovery for housing because that adds liquidity to the market."
Mr Chan's organisation was one of the few that predicted a 0.5 per cent increase, with a media estimate of 18 economists polled by Bloomberg predicting a 0.5 per cent drop.
The rise ends five consecutive quarters of declines and experts agree that the 1.25 percentage points worth of interest rate cuts seen since November 2011 by the Reserve Bank of Australia (RBA) have had an effect.
This comes just one week after RBA senior economist Andrew Wilson indicated there were improved levels of confidence among homebuyers as the country entered the spring quarter.
Back to News