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Property prices in Oz capitals record biggest decline in five years

Property prices in Oz capitals record biggest decline in five years

australian-propertyThe average residential property price in Australia’s eight state and territory capital cities has recorded its biggest monthly decline in five-and-a-half years.

According to the latest RP Data-Rismark Home Value Index, property prices in Australia’s capital cities slumped by 1.9 per cent in May – the biggest slide seen since December 2008.

Melbourne recorded the biggest price falls, with average values down 3.6 per cent compared to a month earlier, followed by Adelaide and Brisbane, where prices plunged by 1.8 and 1.7 per cent respectively.

Even in Sydney, where prices had previously seemed to be on an unstoppable upward trend, the average price of a property in May fell by 1.1 per cent; although Australia’s biggest city remains the most expensive in which to buy a property, with the average price of a dwelling in the city being AUS$678,500. The average price for all capitals combined is AUS$545,000.

Last month, the Australian Bureau of Statistics’ latest Residential Property Price Index (RPPI), revealed that there had been a quarterly residential property price increase of 1.7 per cent across the country’s capital cities in the first three months of this year – significantly below the 3 per cent growth that had been forecast,

Of course, news of falling property values is likely to be music to the ears of any soon-to-be migrants planning on making Oz their new home. And those clever enough to get the currency exchange process in order in good time, could find the property purchasing process even more affordable. When exchanging large lump sums, even only slight fluctuations in the currency exchange markets can have a huge impact on the money you’ll have available to start your new life.

The Pound-Australian Dollar exchange rate has gone up and down more times than a hyperactive yo-yo in the past three months. For example back at the start of March, £1 would have purchased you AUS$1.864, while yesterday you would have received only AUS$1.798. If you were exchanging £150,000 – say from the sale of your UK home – then this would equate to a difference of almost AUS$10,000 in just three months.

However, in mid-April and £1 was worth just AUS$1.776, meaning an exchange of £150,000 would have netted you AUS$266,400 – AUS$3,300 less than you would have received yesterday and a whopping AUS$13,200 less than you would have receive on 5th March!

Fortunately, you don’t have to be a financial whizz kid to make sure you get the best exchange rate – that’s what companies like Halo Financial are there for.

Foreign exchange companies understand why the exchange rates are moving and just what impact this has on your currency transaction. What’s more, they can also explain how to make your money go further and give you a range options on exactly when you wish to exchange, and how much you should exchange at a time.

To find out how you can make sure you can get the best exchange rate possible, and take advantage of positive fluctuations in the markets, visit www.halofinancial.com/be5

Article published 3rd June 2014