With prices of property in
Australia set to fall over the next year, a new survey has found that New South
Wales is set to be the best performing state in the country. Prices in the state are set for only
slight falls in the next twelve months whilst values slip further in the rest
of the country.
Property in Australia set to see price falls over next 12 months
The Sydney Morning Herald recently reported the findings from the
National Australia Bankââ¬â¢s residential property index, which predicts houses
prices, rents and real-estate market conditions over the coming year. The latest index report predicts that
national home prices would drop by 1.4 per cent in the 12 months from June
2011.
However, in New South Wales,
house prices are tipped to fall by only 0.7 per cent, according to the report.
The index is made up from the
opinions of leading property professionals in Australia including estate
agents, property developers, managers and other industry figures. It is designed to give a positive or
negative assessment of the property market and the outlook for the future.
National Australia Bankââ¬â¢s chief
economist Alan Oster said: “There has also been a notable deterioration in
house price expectations across the country since our last survey.ââ¬Â
Property in Australia sees 2.7 per cent fall in value in 2011
June figures from the leading
data analysts RP Data said that property in Australia had seen a 2.7 per cent
fall in value on average in the first five months of 2011.
The survey attributed the price
falls to higher interest rates and tighter lending criteria.
The report said: ââ¬ÅHousing
affordability was also identified in the current survey as a ‘significant’
constraint and was viewed as being most problematic in Victoria and Western
Australia.
“The sustainability of house
price gains was also cited as a ‘significant’ concern, with these concerns
highest in Western Australia and NSW.”
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