National Media Statement – WBP Residential Advice
Today’s release of the ABS House Price Indexes: Eight Capital Cities, Dec 2010 confirmed the impact of interest rates on the property market in 2010, particularly the surprise rise in official rates on Melbourne Cup Day.
Speaking in Melbourne today, WBP Property Group CEO Greville Pabst said, “The Cup Day rise had the most impact taking many homebuyers by surprise. I would also point to bank rises above official rates as having a psychological impact on homebuyers.”
“While there’s no question that interest rates made an impact on the property market, it’s not been universal with many affordable locations continuing to show growth in the December quarter.”
These ABS House Price Index figures also point to the pre-eminence of Melbourne (10.8%), Sydney (7.4%) and Canberra (6.5%) property markets. Despite all the talk of two speed economies, when it comes to property, it’s these “old economy” markets which are leading the way.