Property group announces, the reason being global bank interest rate hike, which forces the customers to shun away from investing in real estate. It is expected that the unit price could slash to a massive ten percent by the coming year, which is the major cause for fall in Australian property value.
Australian Property Monitors (APM) surveys that the house prices have fallen in Brisbane and other four major cities in Australia in the previous months causing the worst ever market fall in the last four years. It is also analyzed that a further dip of about 10% could be seen in the next few months. Brisbane poised a 3% slam in property rate falls only after to Hobart and Perth, whereas, Perth stands at 2.8% and Hobart at 3.8%.
Property group learns that the fall of prices of Brisbane house prices by 5% may be due to the auction clearance rates which were hiked from 25% to 60%.
Here it is also to be noted that the inflation has bloated to 4.5% in the month of June to increase the June quarter consumer price index (CPI) by 1.5%. This results in an ultimate increase in cost of living by 4.5%. It is also viewed as the highest since 1991. This inflation puts Brisbane house prices to fall by 5pc as it has been alleged by the property group.
This fall by 5 percent is a result of the increase in the consumer price index (CPI and as such there has been a hike in housing loans and in the price of crude oil. So today it happens that we spend more and buy less. Even though the purchasers have reduced on their expenditure the cost of living has increased drastically.
You will be surprised to know that the increase is beyond the suggested Reserve Bank of Australia (RBA) range of two to three percent. You would be wondering where the predicted 1.3 % and the range of 4.5% were seen today.
It is also seen that Brisbane is the only city where both house rates and unit values have come down drastically. It is even predicted to drop further to ten percent in a years' time. There by a reduction of forty four thousand dollars from a house is estimated. In the coming years the loan formalities would even worsen, with increase in interest rates, the customer will be forced not to invest in real estate. Here, the banks have started increasing the mortgage rates and if the Reserve Bank of Australia increases the interest rates, it will make matters worse.
Already, real estate dealers have less construction work and most of them have put a halt to their dream of buying a property. In Queensland alone a fall of 7.3% was experienced during the month of June, proving that Brisbane house prices would fall by 5%
What does Mr. Warwick Remby say on "Brisbane house prices to fall 5pc that they have also initiated problems like credit controls, hike in interest rate and increase in cost of living. The property group data also reveal that this may move to ten percent dip in the coming months which could paralyze the housing industry in the state.
By Paul Sharp
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