The slowdown will make it easier to buy property in Australia.
Some good news at last for Australia’s first time buyers as house prices fell in June by 0.7% heralding an end to the steep housing boom that has priced many buyers out of the market.
The data was taken from Australia’s capital cities and is the first time house prices have fallen for the past 17 months. But owners need not fear a property market crash in Australia as there is a national housing shortage that will keep demand up.
However despite the fall, house prices are still around 10.5% dearer than they were this time last year. Australia has been named as one of the most expensive countries to buy a house as Sydney saw million dollar apartments sold within days.
Many blamed the housing bubble on foreign investors from China and Asia who were buying luxurious city properties. Such was the demand from foreign buyers that some estate agents dedicated their services to them. The government was forced to reintroduce legislation that it had previously eased on foreign buyers, restricting them to buying new property only.
This legislation along with increased interest rates are thought to be behind the current slowdown. Grants are also available for first time buyers to help them get a foot on the ladder.
Hopes are now high that the market will stabilise, which looks likely as there is an estimated housing shortage of around 200,000 which will to keep the market buoyant.
Housing experts are now saying that the market will turn in the buyer’s favour, so there could be no better time to buy a house in Australia as vendors are more open to negotiations. If you are considering buying property in Australia, read our property guide for advice and information.
Love Australia? Let us keep you informed...
- Join the Embrace Australia community today. Have your questions answered by our experts, start your own blog, get vital migration information and gain valuable insight from those who have already made the journey.
- Subscribe to our RSS Feed and have all our daily news and features delivered straight to your news reader.
- Join our mailing list -
