Latest from Business Spectator
http://www.businessspectator.com.au/bs.nsf/Article/Aust-resedential-property-values-rise-11-$pd20090331-QMW5X?OpenDocument&src=is&alerts&loc=center
Dave
Aust residential property values rise 1.1%
By a staff reporter ???
Australian residential property values have risen 1.1 per cent in the first two months of 2009, recovering from a three per cent fall last year, new data shows.
The RP Data-Rismark Hedonic Property Index released on Tuesday showed Sydney and Melbourne were the key drivers of the 2009 rebound, with dwelling values up 0.5 per cent to $509,900 and 1.9 per cent to $428,600 respectively.
The research showed the market had been helped by lower mortgage rates - which are at their lowest point in nearly 40 years after peaking at 9.6 per cent in August last year, before dropping to 5.8 per cent currently. Economists expert the Reserve Bank of Australia (RBA) to cut the official cash rate by at least 25 basis points when the board of the bank meets next Tuesday, April 7.
"The recovery in prices over the last quarter has been driven by the 40 per cent reduction in mortgage rates, the boost to the first home owners grant, the government's fiscal stimulus and a significant housing shortage," Rismark International chief, Christopher Joye, said.
Mr Joye said the first home owners grant had been a successful policy, and the health of Australia's financial system meant the market had been more resilient than other countries around the world.
"The resilience of Australia's housing market has also been underpinned by our robust banking system, which (sic) CBA (Commonwealth Bank of Australia) recently reporting that its 90 day mortgage default rate was a stunningly low 0.38 per cent," Mr Joye said.
In August, the ASX will launch a new residential property derivatives market based on a daily version of the RP Data-Rismark Hedonic Indices.
Using liquid ASX-listed contracts, Rismark said the new market would allow individual and institutional investors to go long and short on the total returns to every capital city and national market.
http://www.businessspectator.com.au/bs.nsf/Article/Aust-resedential-property-values-rise-11-$pd20090331-QMW5X?OpenDocument&src=is&alerts&loc=center
Dave