Australian property prices 'could jump in 2013'
Article by Mozo
Australians who have taken out home loans to purchase property could see a good return from their investment in the new year as long as the Eurozone situation does not worsen, according to new data from SQM Research.
The analysis firm forecast jumps of between four and seven per cent in the country's capital cities, claims the 2012 SQM Research Boom and Bust Report.
Even in a worst-case scenario where the eurozone breaks up, banks ration credit and the Reserve Bank of Australia (RBA) is forced to make further cuts to the base credit rate, property prices are unlikely to be affected too adversely, according to the firm.
SQM Research managing director Louis Christopher told Property Observer that Sydney remains the strongest market but claimed the rest of the country is also in a relatively good position.
A report from the RBA recently claimed many Aussies are ahead on their mortgage repayments, meaning they have a good buffer against financial stress.