Unsolved Mystery: Australia Property Market

With interest rates rising, and the number of home loans approval falling, we're still seeing continued price rises in the residential property market.

Recently, my neighbour put up her house for auction. It's one of 2 units on a block. Her house is the front one. It's approximately 30 years old. It has 2 bedrooms and a study with 1 garage. She put it on auction for between $600K-650K. She would have been quite happy if she could get $670K as she bought it for $405K about 3 years ago, but it was sold before auction for $720K.

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There are talks that the price growth is still strong due to level of supply and demand, immigration and foreign investments. During my search for properties with my friends, I've encountered potential purchasers from many backgrounds. To name some, these include people from the US, Canada, Europe such as UK, Denmark, Finland and Switzerland. There were also some Chinese from China, HongKong, Singapore and Malaysia.


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