Real Estate slump is over in Australia

Posted by Anabel

September 29, 2009

Melbourne Skyline

We have all seen the queues of mostly young people lined up in front of the houses for auction in the past weekends. Tomorrow, the first part of the ‘first home owner‘ bonus will disappear - the 30th of September marks the last day of this highly popular boost to the real estate sector. Where we have seen worried faces in the industry before when such extinction of government help was on the horizon a few months ago, this time it is all different.

The real estate industry has been a happy one in these past weeks and continues to do so: Prices went up in most of the cities, and the outlook for Australia’s real estate sector couldn’t be better.

The RBA reported today that average annual population growth Down Under has been 340,000 over the last five years, up from 240,000 over the prior five-year period, an increase of around 40 per cent. “Yet the number of dwellings we have built has not risen. Commencements of new housing over the past five years have averaged around 150,000 dwellings, versus around 155,000 over the previous five-year period. It would not be surprising if this was one factor that had contributed to the increase in the cost of housing over the past decade,” states a report published by the RBA today.

We can see a new boom for the housing industry arise: the real estate slump is officially declared over.

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.