Research shows house prices on the rise
A new report has found that median house prices across Australia's capital cities have increased by 1.4 per cent over the June quarter.
The latest data from Bendigo Bank and the Real Estate Institute of Australia Real Estate Market Facts report, which was prepared for the firms by the Real Estate Institute of Australia, specified that other dwellings were also up by 0.6 per cent.
Driving this was an increase in the number of home loans to first home buyers – and these were up by 5.9 per cent to total 25,101 over the course of the second quarter of the year.
It was noted that this is a considerable increase of 11.8 per cent compared with the same time frame the previous year.
The market is also becoming more competitive as banks make efforts to attract more buyers to use their services.
Indeed, the Members Equity Bank recently announced that it has slashed its three-year fixed rate property loan package from 6.05 per cent p.a. to 5.39 per cent p.a.
One-year and five-year fixed rates have also been cut to 5.39 per cent p.a. and 5.99 per cent p.a respectively – and this cam in the wake of similar reductions from the Commonwealth Bank.
Bendigo and Adelaide Bank's retail executive Dennis Bice said that a wide range of sectors across the nation's property market are all enjoying considerable growth.
"The results underscore the old property adage that there really are 'markets within markets' both at different levels in different cities and in regional centres around the states and territories where good value and solid returns can still be found," the expert remarked.
He added that demand is particularly strong in the major urban areas with tight vacancy rates.
"The positive impact this has on rental returns, coupled with lower borrowing costs, should see a more active spring real estate season," Mr Bice stated.
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