Luxury Australian property prices fall
The value of luxury properties in Australia's state capitals has declined sharply – offering hope to those in search of decent home loan rates.
According to new data from analyst RP Data-Rismark, mid-range properties in the suburbs lost 0.9 per cent of their value year-on-year.
Properties in the cheapest 20 per cent performed much better, however, prices still fell by 0.5 per cent.
Tim Lawless, research director at RP Data-Rismark, said that the strong residual value of low-price suburban homes means that first-time buyers are still able to access the market.
"The solid performance of cheap suburbs runs against the grain of popular claims that default rates are rocketing up amongst first time buyers," he said.
Last week, the Reserve Bank of Australia predicted that households will be borrowing less in the short term because of subdued growth in the credit markets.
Get more information on the latest Reserve Bank interest rates with Mozo.