The High Price Of Australian Real Estate

Real estate in Australia shows continued strength despite the global slow down of the worlds housing markets. A  recent report by Canadian Scotiabank confirms that property in Australia remains one of the worlds strongest markets. Other reports suggest that Australia maybe subject to over pricing driven by demand from new Australians

The Global Real Estate Trends report trackes housing markets in 12 advanced economies throughout 2010.

Australia was the “clear frontrunner in 2010” the study said, with housing demand supported by “low unemployment and tight supply ….adding to the upward pressure on prices”.

 Ã¢â‚¬Å“While Australia’s close trade ties with Asia and resource wealth will continue to underpin a solid pace of domestic activity, higher interest rates will worsen already strained affordability,” it said. It is predicted that 2011 will be more of a stable year for Australia due to its close ties with Asia and wealth resources

In an article in Economist magazine, it is reported that Australia’s housing prices are approximately 63 percent overvalued. This is primarily due to increased immigration and not enough property to meet the need. It is estimated that almost three quarters  of a million people immigrate to Australia per year whether it be permanent or temporary migrants.

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