Buyers may look beyond most populous capital cities

By the resi financial blog team, 06 January 2014

Invest in regional Australian property

Demand for residential housing in Australia has reached its highest level since September 2009, new statistics have shown - but it remains to be seen whether people will begin to look beyond the major centres of Sydney, Melbourne and Perth if they are just starting out on the property ladder.

House prices in these major centres have experienced very strong growth over the past three years, according to RP Data.

What this could lead to, according to senior research analyst Cameron Kusher, is interstate migration as people relocate to more affordable centres - especially as an influx of international migrants continues to descend on the nation's capital cities, pushing up prices in these markets.

Writing on December 20 for the RP Data Blog, Mr Kusher noted that in recent years, migration away from more populous states like New South Wales and Victoria to major resource centres like Queensland has started to slow.

But, he added, the rising cost of property in Sydney, Melbourne and Perth could be one of the catalysts behind another wave of interstate migration. Overseas migrants tend to settle in Australia's most populous cities, data from the Australian Bureau of Statistics (ABS) suggests, so buyers looking for better bargains may wish to go further afield where there is less competition in the market.

If you are thinking about getting your foot on the property ladder for the first time, you might want to consider your options for the best fixed interest rates.

An advantaged of a fixed rate loan is that they make budgeting a breeze - because your rate of interest does not fluctuate with the market, you can rest safe in the knowledge that your payments will remain consistent from month to month.

Categories: Home Loans