No doom and gloom for property industry
With prices having risen modestly over the September 2012 quarter, claims the housing market will collapse are incorrect, said the Housing Industry Association’s economist, Geordan Murray.
“The ABS Index of Established House Prices showed prices rose by 0.3 per cent in the September 2012 quarter. This is the fifth consecutive quarter when the index has remained more or less steady, although the current level is 4.1 per cent below the peak achieved in mid-2010,” said Mr Murray.
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“Lower interest rates, a relatively stable labour market, steadily rising household incomes, and population growth continue to provide a stabilising influence on housing prices,” he said.
“The economic reality must certainly be a blow to the headline-chasing doomsayers who can’t help but forecast an imminent collapse in Australian house prices.”
In combination with recent demographic data, in fact, Perth is showing some interesting signals with demand of existing stock mounting and prices escalating, he said.
Perth saw a 1.8 per cent growth over the quarter for established housing. This compares to growth in Sydney, at 0.3 per cent; Brisbane, by 0.4 per cent; and Melbourne, by 0.2 per cent.
