In November last year the Reserve Bank of Australia (RBA) made the decision to increase interest rates. The shift to 4.75% ha now has a clear effect on the property market in Australia, with property prices falling dramatically.

This is thought to have been a tactical move by the RBA in order to help steady the property prices in the country, following a record high for prices in the year up to March 2010. By June of this year, property prices had fallen on average by 1.9%.

Perth saw the greatest decline out of the eight major cities in the country, with a fall of 4.1%, whilst Hobart and Canberra saw falls of 2.8% and 2.2% respectively making them all very appealing to investors looking to buy property in Australia.

Australia has also so far managed to avoid a housing market crash, unlike many other developed countries, and reasons for this could be population growth, tighter rules on lending, and very low interest rates for mortgages.

To understand the full step-by-step process to buying a property in Australia, collect The Overseas Guides Company’s ‘Australia Property Buying Guide’