Industry analyst BIS Shrapnel's report, 'Residential Property Prospects 2006 to 2009', highlighted the "inaffordabilty of properties in the major cities" as a reason for the continued downturn of values, as well as cheaper rent costs and a surge in popularity among regional areas with house hunters.

While the news may come as a blow to property owners looking to sell, it has come as welcome news to first-time buyers and migrants looking for a good property deal with their exchanged pounds.
 
The Australian Bureau of Statistics has revealed that while prices in the Western Australian capital city have risen by 28 per cent since last year, in Sydney they have fallen by 3.8 per cent, while Canberra, Brisbane and Melbourne have experienced paltry increases in property prices by comparison.

However, even in Perth, which along with Darwin was the only city to experience property price increases, the property boom is expected to slow down by around 3 per cent.

Melbourne metropolitan area property prices have dropped from the five-year peak recorded in 2003, and the median property price is currently put at AUS$359,500 (around £145,000) according to the Real Estate Institute of Victoria.

In Sydney, which is the most expensive Australian city in terms of property prices, the average property price is AUS$486,000 (£199,000), following a 57 per cent rise between 2001 and 2004.

In contrast, regional areas in New South Wales have seen prices rise as buyers look to the suburbs and further afield for homes and investment properties.

Over in New Zealand, the rate at which residential properties increase in value is slowing, according to figures released by valuation and property information company Quotable Value.

Property values increased by 11.1 per cent nationally, calculated over the three months ending July 2006, down from the 11.5 per cent growth reported in June. 

Last month the average New Zealand sale price was around NZ$336,000 (£112,000).

Of the main cities, Auckland's price growth was 7.5 per cent, Hamilton's was down to 17.5 per cent, Christchurch 10.4 per cent and Wellington 9.9 per cent, while Dunedin at 5.8 per cent maintained the same level of growth reported in June.

In the provincial cities prices in Gisborne on North Island rose 21.5 per cent, Whangarei, in Northland, grew by 20.9 per cent, Invercargill, in Southland, saw property value by 12.2 per cent and New Plymouth, North Island, 8.3 per cent all reported decreases in the growth rate for the period ending July 2006.

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Article published on 15 August 2006