Worries over property prices ‘have eased’

The Westpac-Melbourne Institute Consumer House Price Expectations index has fallen to 51.1 from 58.8 in July, The Australian newspaper reports.

Some 63 per cent of people surveyed said they expect prices to increase over the next year, compared to 70 per cent who held this view in July.

Over the next year, consumers expect prices to rise an average of 2.6 per cent, down from the 3.6 per cent predicted in July and 5.7 per cent anticipated in April.

"The fact that most still expect prices to rise also suggests that those looking to sell properties will be more inclined to postpone selling until a later date than accept materially lower price offers now," Matthew Hassan, senior economist at Westpac, said.

Last month, Rismark International managing director Christopher Joye told The Australian newspaper that the property markets of Sydney and Canberra have been the best performing out of all of Australia’s State capital cities so far this year.

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