With increased interest rates and high property prices, many investors are worried that the Australian property market will see a dramatic downturn soon. However, the real estate market Down Under is, in fact, booming in certain areas and experiencing steady growth.

National house prices rose 8.6 per cent this year to the March quarter, according to the Australian Bureau of Statistics (ABS). The mining boom has continued to prop up Perth's house prices, which increased 2.1 per cent in the March quarter. 

Other statistics from the March quarter saw Hobart experience a 3.8 per cent increase, followed by Brisbane with 2.9 per cent, Darwin at 2.8 per cent. Perth was followed by Adelaide with a 1.7 per cent increase, Melbourne at 1.5 per cent and Canberra at 1.2 per cent.

Despite these growth rates being below those experienced at the height of the Australian property boom four years ago, the figures still show a promising picture for property investors.

"Although weighted average house price growth has picked up from the lows of 2004-2005, annual growth rates are far below those experienced at the peak of the house price boom in 2003," ANZ economist Amber Rabino told the Move Channel."Nonetheless, in aggregate, strong prices for housing remain well supported by tightening housing market fundamentals, low rental vacancy rates and strong household incomes."

The consistent buoyancy of the Australian property market is due to a number of factors, namely: low-cost commercial properties and a growing international business presence in major cities; high demand for real estate from expatriate communities; increased demand for rental accommodation due to high interest rates and property prices; the wide range of mortgage options available to foreigners and population growth and rising incomes pushing up property demand. 

A five-bedroom, two-bathroom house in Secret Harbour, Perth, is currently on the market at AUS$469,000 (pictured). The master bedroom has glass-sliding doors leading onto the garden, and the property also includes a double car-port and is close to the beach.

A centrally located apartment in Spring Hill, Brisbane, is on the market at AUS$255,000. It features a bedroom with modern bathroom, an open living area, kitchen and city and river views. It also has access to a swimming pool and entertaining areas.

Both of these properties are marketed through Real Estate

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Article published on 17 May 2007