Australian house prices take deep dive in five years

Australia's housing market witnessed its biggest quarterly dive in five years in the first three months of this year, according to the latest survey figures on Saturday.

The average median house price dipped 2.7 percent, slipping from 471,300 dollars (452,400 U.S. dollars) in the last quarter of2007 to 458,488 dollars (440,100 U.S. dollars) in the first quarter of this year, according to the Mortgage Choice/REIA Real Estate Market Facts.

Mortgage Choice and the Real Estate Institute of Australia (REIA) said the fall in the median house price was the biggest in the five years that they have been compiling the data.

The previous biggest dip in the national quarterly median house price was a drop of 2.0 percent in the first quarter of 2005.

On a year-to-year basis, the Australian median house price increased by 8.3 percent and the other dwelling price increased by8.2 percent, reflecting strong performances in some cities during 2007.

Rents for three-bedroom houses and two-bedroom other dwellings rose in all capital cities in the first quarter of this year, indicating a continued shortage of rental properties, the figures showed.

REIA president Noel Dyett said the median house price fall in the quarter was not surprising following interest rate rises aimed at curbing inflation.

Source:Xinhua