Australias inflating property prices cause concern

  • 11 years ago
  • Uncategorized

Property prices in Australia’s large cities Melbourne and Sydney are continuing to experience a boom, and are causing experts to speculate about a potential property bubble, reports.

It is thought that the rising house prices are a consequence of a record low in interest rates, and a strong surge interest from foreign investors but there is 17 per cent less stock on the market than in 2012. 

Some House buyers and sellers are beginning to worry if the Australian market is heading towards a bubble as a result of there not being enough stock coming into the market in Sydney and Melbourne.

The high prices are causing investors to look at property in more rural areas but experts say that it is best to buy in the more metropolitan areas of the country.

Charles Tarbey, the chairman of Century 21 Australia and New Zealand told that the country is not getting enough stock that it needs to reach the demand which is pushing prices up in certain areas and some might say to a bubble status and there are areas where people are paying probably a little more than they should.

Mr Tarbey, urges buyers not to worry, he said: “The word bubble has been  used so many times over the last few years. There have been plenty of people screaming out about it. People are probably trying to sell books on the back of it.”

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