Batemans Bay Property News
Residential property markets across Australia rema
Prices continue to surge?
Date: Wednesday, October 22, 2003
Residential property markets across Australia remained dynamic in the June quarter 2003, according to the Real Estate Institute of Australia’s quarterly review, Market Facts, released today. Prices continued to surge upwards, a trend that has been a feature of the market since mid-1996.
While there are some indications that the upward trend may be starting to
slow, urgent answers are needed to address the increasingly tough market
conditions for first home buyers and low income earners.
The stand-out cities where very strong growth continued through the June
quarter 2003 were Canberra, Adelaide, Brisbane and Hobart,’ said John
Hill, President of the Real Estate Institute of Australia.
Changes in the median prices for flats, units and townhouses may however
be the first sign of good news for home buyers. Compared with the percentage changes that occurred between the December 2002 and March 2003 quarters, there has been a slowing of price rises for flats, units and townhouses in most capital cities during the June quarter,’ said Mr Hill.
Rental markets began to stabilise in most markets during the June 2003 quarter, while vacancy rates increased in all capital cities.
‘The Real Estate Institute of Australia believes that demand for residential property will continue to be high across the nation in the short to medium term at least,’ said Mr Hill. ‘Whilst there are some signs that the heat in the market is starting to ease, a significant decrease in property prices in the short to medium term is unlikely. We are increasingly concerned about the difficulties
faced by low income earners and first home buyers.
‘Impediments to housing affordability include inefficient planning and approval processes, land supply problems, and State stamp duties,’ said Mr Hill.
Real Estate Institute of Australia research showed that in the June quarter 2003, stamp duty contributed a high of 4.79% to the median house price in Melbourne, with duty of $17,200 payable on the median house price of $359,000. Similarly in Sydney, homebuyers were paying $16,415 stamp duty on the median house price of $465,000, or 3.53% of the median house price. Those best off were in Hobart where stamp duty represented 2.76% of the median house price of $180,000 or $4,975.
Mr Hill said, ‘In its submission to the Commonwealth Government’s Productivity Commission Inquiry into First Home Ownership, we will be making it clear that we view inequitable taxation on residential property as a major hurdle for first home buyers.’
For further information, contact:
John Hill President
Ph: 0417 747 440
Alison Verhoeven Manager, Public Affairs
Ph: 02 6282 4277
0403 282 501
Real Estate Institute of Australia