Australia house prices to rise 7%
Australia's residential property market is heading for a recovery, with house prices edging upwards by up to seven per cent over the next year, one report has revealed.
According to data from SQM Research, property values could surge upwards if the Australian dollar continues to sit at parity against the US dollar and the Reserve Bank pulls through with a rate cut.
The 2012 SQM Research Boom and Bust Report suggested a growth in house values by between four and seven per cent is forecast under favourable economic conditions.
Perth, Sydney and Darwin are earmarked for the largest growth in house values, with prices tipped to rise by 12 per cent, nine per cent and 14 per cent respectively.
The report went on to predict that under unfavourable economic factors - including a break-up of the Eurozone - house prices would only dip three per cent, indicating the property market is strengthening countrywide.
Brisbane is tipped for an increase of seven per cent next year, Melbourne, Hobart and Adelaide are forecast for a five per cent rise and Canberra is expected to see a surge of four per cent - equating to a capital city average of seven per cent.
"It's a deep and safe market," SQM Research managing director Louis Christopher told Property Observer.