NEWS
New housing data shows the value of Australian properties rose 3.9% during the first five months of 2009, nearly wiping out losses incurred during 2008.
The RP Data-Rismark national home value index shows prices increased in May by 0.9% to a median of $468,819, just $520 below their February 2008 peak.
The data also shows that home values increased in every mainland capital city except for Perth, and that housing prices have increased nationally by 1.6% over the 12 months to May 2009.
RP Data head of research Tim Lawless says the "really good" news shows the Australian property market is now experiencing a recovery. "The most significant thing is that up to May we have experienced a recovery in the market, it's taken 15 months for prices to virtually recover." Lawless says the recovery has happened sooner than expected, and that it "speaks volumes" about the state of the Australian economy. "Considering the state of the economy, it is kind of surprising to see prices have recovered, but consider also the under-supply of dwellings in Australia coupled with population growth."
CommSec chief economist Craig James says, "Australia can rightly claim the title of ‘the wonder from down under'". "In most developed economies home prices are going backwards, whereas prices are rising in Australia. The solid growth of Australia's population is a key reason why Australian home prices are rising, not falling."
Source: smartcompany.com.au
Published: 30 June 2009
