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12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
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69.38%
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67.09%
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Sub $500K house prices set to slide

By Staff Reporter
09 July 2009 | 1 minute read

The end of the FHOG and various other government funded benefits could see lower end house prices fall by as much as 10 per cent, new analysis from CB Richard Ellis (CBRE) has revealed.

The analysis coincided with ABS figures released yesterday that showed the number of dwellings bought by owner-occupiers in May was 29 per cent higher than in October, when the boost to the first home owners grant was introduced.

The number of first home buyer commitments increased from 28.6 per cent in April 2009 to 29.5 per cent in May 2009, the figures revealed.

CBRE’s manager of residential research, Erin Rolandsen, said first home buyers had been instrumental in propping up house prices in the sub $500,000 market.

“The fact that first home buyers have been driving this boom leaves the sub-$500,000 market particularly vulnerable once the boost is reduced from September 2009,” she said.

“In all likelihood the withdrawal of the FHOG boost at the end of December and state-based measures in July 2010 will have a dampening effect on the sub $500,000 market, slowing sales transactions and causing price reversals in the sub-$500,000 market towards pre-boost prices.

“We expect falls could reach 10 per cent from the peak in some areas depending on local market conditions.”

Since the boost was introduced, rising house prices had increased the average first home buyer loan by $20,000.

Sub $500K house prices set to slide
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Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.