1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Property News

Australian houses most affordable in ten years

July 25, 2012

The Reserve Bank has hit back at claims Australia's property market is unaffordable, saying that buying a house is the most reasonable it has been in a decade.

Speaking at a business launch in Sydney, governor of the Reserve Bank Glenn Stevens said Australian house prices were not exorbitantly high as thought by many.

"Australian dwelling prices on a national basis have in fact declined and are now about where they were in 2002. That is, housing has become more affordable," he explained.

Despite the ratio of property prices compared to income being higher than what it was 20 years ago, Mr Stevens said Australia's house prices were about average on an international level.

"Four or five years ago we supposedly had a housing affordability 'crisis'. Now it seems that the problem some people fear is that of housing becoming even more affordable."

Despite some experts warning that Australian property market is at risk of a crash due to economic uncertainty worldwide, the Reserve Bank has said that a downturn is unlikely due to high demand in the market.

The bank's assistant governor Guy Debelle said the only housing oversupply was evident in parts of Queensland, with the rest of the country struggling to keep up with demand.

Related Articles

Residential growth refusing to slow

New details in residential housing growth mean the economy's strength will continue in the ...
read more

Former industrial precincts to become residential hubs

The New South Wales government has announced plans to turn two former industrial areas in north ...
read more

Perth city budget raises fees but aims to revitalise city

The City of Perth budget for 2014/15 was passed on June 25, setting the stage for the ...
read more

Latest Articles

How strong is the NSW property market?

When it comes to making a purchase in the property market, it seems hard to beat the strength of ...
read more

Building booms across many sectors

There are numerous indicators of strength in the housing industry, and one strong signal of future ...
read more

Cash rate at a standstill

One crucial driver of housing demand is the official cash rate from the Reserve Bank of ...
read more