Houses for sale in Australia are plummeting in prices, according to the latest figures.
This weekââ¬â¢s report, published by RP Data-Rismark, has found that in the main cities, prices are dropping at an increasingly faster speed. Melbourne and Brisbane are seeing the biggest declines, with ââ¬Åseasonally adjusted home prices in Melbourne [dropping by] 5.8 per centââ¬Â, reports OPP.
This fall in price is only beaten by Brisbane, where seasonally adjusted property values fell by 7.5 per cent from January to October this year.
In contrast, Sydney has proven to be more resilient to the economic downturn, with house prices declining by only 1.4 per cent across the same number of months, while Canberra actually saw its prices jump by 0.9 per cent.
Investors head Down Under
ââ¬ÅThis slump in national prices are being skewed by a fall in demand at the luxury end of the market,ââ¬Â Charles Tarbey of agency group Century 21 told OPP, adding that they had seen ââ¬Åa spike in enquiriesââ¬Â as a result of the November cut in interest rate.
Indeed, as prices and interest rates go down under, so do investors, with the reduction in real estate value attracting buyers to the countryââ¬â¢s market. In October, sales increased by 5.5 per cent, according to the Australian Housing Industry Association, up from the drop reported in September.
A growing trend
The trend looks set to continue. According to broker AFG, mortgages in November increased by 18 per cent on average across the country, as people keep purchasing cheap property.
Victoria saw the highest growth in the number of mortgages processed, with figures increasing by 26.7 per cent. Queensland and New South Wales, too, reported rises of 20.8 per cent and 16.4 per cent respectively.
ââ¬ÅWe're experiencing the paradox that weaker global economic conditions and lower rates is good news for Australian property buyers - at least for now," general manager of sales and operations Mark Hewitt told Property Showrooms.
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