Australia records world's fourth-largest property price increase

Australia recorded the fourth-largest property price increase during the year to March 2010, new research shows.

According to the latest Global Property Guide, the rise puts Australia more than 16 per cent above some of the world’s biggest cities, the Advertiser reported.

Britain was ranked tenth while France came in 17th, with most Asian and Pacific countries outperforming their European counterparts this year.

Hong Kong, Singapore and Taiwan claimed the top three spots.

Rising house prices may encourage more Australians to compare home loans as it becomes more and more difficult to afford a property. Last week, the Daily Telegraph revealed that many Australian lenders are increasing the size of mortgage rate rises that potential borrowers must be able to prove they can handle.

The Global Property Guide warned that many Australian and New Zealand cities may be overvalued, pointing to potential property bubbles in the countries.

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