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Confidence for Australian Property Market

By Jamil Allouche

Reserve Bank of Australia (RBA) Governor Glenn Stevens discussed the future of Australia's housing market at the 17th Annual Credit Suisse Asian Investment Conference in Hong Kong on March 26.

"We certainly see abundant signs of confidence in the housing market," Mr Stevens explained.

The announcement will attract the attention of investors for property in Carlton as well as other Melbourne suburbs. 

Mr Stevens brought up the increases in Australian dwelling prices over 2013, noting that current prices are 5 per cent high than the previous peak, which hit the property market in 2010. 

However, a warning was also issued to those purchasing real estate as an investment.

Housing credit growth has picked up somewhat, "though it remains far below the rates seen in the 1990s and 2000s". 

Where the pick-up is significant is in the investor category, causing Mr Stevens to issue a warning. 

He noted investors need to take care how much financial leverage they require.

That said, investors who undertake a careful consideration of where to buy, borrow prudently and have expert property management to ensure they maximise their rental yields will be in a better position to make good on their investor loans.

Dwelling construction is also expected to "rise strongly", which will be welcome news for first time home buyers wanting to secure the perfect property.

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