Returning volatility may prevent large house price falls
Recent fluctuations in capital growth rates in residential property in Australia indicate the likelihood of large falls in the market has decreased, according to the PR Data Rismark National Residential Property Value survey.
However, this projection is contingent on a “stable interest rate environment, which is likely to result in a static rate of growth”, head of research Matthew Hardman said.
The May survey found the housing market was experiencing a “higher level of volatility from quarter to quarter” along with all asset classes, he said.
Capital growth in the key housing markets of Sydney and Melbourne was found to have had “flattened considerably during 2008, in particular, but the recent return of volatility indicates this pattern may be coming to an end”.
Hardman is “confident that the supply side imbalance in the national housing market will see further property value increases over the next five years”.
“We expect low levels of housing supply to continue placing upward pressure on housing prices over the long term,” he said.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
