House prices rise less than 2pc
Saturday 21 August 2004
Interest rate rises and declining migration are hammering the housing sector, particularly cheaper properties.
By The LandlordQuotable Value's house price index released yesterday showed price growth pulling up fast, dropping from a 5 per cent index change in the March quarter - and a peak of 7.3 per cent last September - to just 1.9 per cent in the June quarter.
Quotable Value spokesman Blue Hancock cited interest rates and migration as the two main factors behind the turnaround.
"Continued annual house price growth at current levels is not likely to be sustainable in the medium term, given increasing interest rates and the downward trend in net migration," Mr Hancock said.
Although quarterly growth slowed, the annual house price index increased by 22 per cent, up on the 15.5 per cent growth rate to June last year, the data showed.
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