Australian property prices fall for the sixth consecutive month

Australian property prices fall for the sixth consecutive month

Australian property prices have fallen for the sixth consecutive month according to reports from Propertywire.

Prices fell across the state's capitals at an average of 0.2% in June, following a fall of 0.3% in May, 0.4% in April and 0.5% in March. And they show little chance of improving.

The lax credit conditions for gaining a property in Australia have been a sticking point for some time, with many property experts and overseas investors believing that the property market is the Australian economy's weak spot.

Chris Joye, an economist at funds management company Rismark believes that the values will continue to fall, due to real estate being too expensive. Property prices have risen for a number of years because of easy credit conditions.

“We think the Reserve Bank of Australia is likely to raise rates at least once or twice more to address Australia's burgeoning inflation problem, which means dwelling values will probably soften a bit further. This should open up attractive investment opportunities,” he said

Brisbane and Perth have been among the areas worst hit by the slump with values having dropped by 6.3% and 4.7% respectively, meaning these could be good areas for overseas investors to target.

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A Place In The Sun