Underperforming Brisbane to play catch-up
Underperforming Brisbane to play catch-up
Posted on Monday, April 29 2013 at 12:59 PM
Brisbane’s property market is improving at a slower rate than other centres, according to information presented by Cameron Kusher, a senior research analyst with RP Data.
In a presentation to the
Australian Property Institute last week, Kusher said Brisbane values have room
for improvement.
“Brisbane home values are
increasing but underperforming the capital city benchmark.”
According to the data,
dwelling values have increased by 2.4 per cent over the 12 months to March 2013
across all capital cities.
Brisbane recorded a growth
rate of 1.4 per cent for the same period.
The information shows Sydney
home prices are currently 32.7 per cent higher than Brisbane, the largest gap
since January 2006. Selling prices in Melbourne are 14.5 per cent higher than
Brisbane, the greatest gap since August 2003.
The results come on the back
of Kusher’s report, released on Friday, which says Australian Bureau of
Statistics figures indicate interest rates could fall further.
“Based on data over the past
six months, annual inflation is currently running at 1.2 per cent which is well
below the Reserve Bank’s target range of two per cent to three per cent.”
Kusher says this will
bolster the case for further interest rate falls, not rises.
“Overall the data indicates
that inflation in the Australian economy remains at low levels and the calls
for interest rate hikes will likely now dissipate.
“In fact, with home value
growth slowing in April, commodity prices falling and mining investment
expecting to peak throughout 2013, there may be a need for further interest
rate cuts this year.”
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