The Sydney property market has bottomed out after regular quarterly declines since March 2004, according to PMI Mortgage Insurance.
Property price growth in Perth and Darwin is rising, buoyed by robust economic growth driven by a booming resources sector. Price rises are expected to stand firm for the rest of 2006 and into 2007.
The findings were revealed in the PMI Residential Property Overview Quarterly Update – September 2006. The Brisbane market has improved slightly, underpinned by a buoyant economy. Little change is expected in Sydney, Melbourne, Adelaide, Canberra and Hobart as interest rate rises are expected to offset any gains from wage increases. Loans to owner/occupiers increased by 11 per cent in 2005/06. "Nationally, loans to first home buyers increased by 24 per cent in 2005/06", BIS Shrapnel building and construction director Rob Mellor, who prepared the quarterly update on behalf of PMI, said.
"This recovery likely reflects the return of first home buyers now that the rapid price growth of previous years has tapered off, as well as the introduction of additional state government incentives to first home buyers from 2004/05. Further growth in first home buyer activity in 2006/07 is likely to be more modest across all states." PMI is a mortgage insurer, credit enhancer and residential property market specialist with 40 years' experience in the Australian market.
