Property prices in Perth and Sydney set to increase

Home loans customers may be tempted to purchase an abode in Sydney or Perth in light of new figures suggesting that the cost of residences in these cities will increase in the coming years.

The QBE Lenders' Mortgage Insurance (LMI) housing outlook report researched by BIS Shrapnel suggested that in the latter metropolis, the cost of a home is likely to rise by 20 per cent in the next three years.

Those who want to purchase a house in Sydney could find they pay 19 per cent more in 2014 than they would if they took out a home loan now, the study asserted.

With the cost of property rising in Sydney, the median abode in the city is likely to rise to $770,000 in the three years to June 2014.

Ian Graham, chief executive officer of the firm that commissioned the study, commented: "QBE LMI is cautiously optimistic about the outlook for the Australian housing market."

This comes after the RP Data-Rismark hedonic indices suggested that Sydney is one of the only cities in which the cost of a home has remained relatively stable since the dip during the global financial crisis.

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