Australian property prices spiral upwards

SYDNEY: Australian real estate prices are rising strongly and show no signs of abating, analysts said yesterday, after weekly sales in one state hit a record A$1.025 billion (A$1 = RM3.04).

The Real Estate Institute of Victoria said last week saw "the largest dollar volume of transactions ever recorded" amid growing confidence in the economy as people took advantage of low interest rates.

"We've seen more physical sales in a week period, but never have they passed the billion dollar mark," research manager Robert Larocca told AFP.

"So that's partly a sign of how strong the market is and it's also a sign that people are spending more than they have in the past."
Larocca said the surge in sales was the result of historically low interest rates following the global financial crisis and the growing population in Melbourne, Australia's second largest city, outstripping available housing.

"People are confident, they are confident because the economy is going much better than they expected it to," he added.

David Airey, president of the Real Estate Institute of Australia, said Melbourne was one of the country's strongest markets but noted that Australian property prices were strong and rising.

By AFP