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AU House prices set to rise

Property Here - Tuesday, June 04, 2013

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HALF of homeowners expect house prices to rise in the coming months, a survey from RP Data has revealed.

This compares with just 33 per cent of respondents expecting prices to rise when the survey was conducted in October last year.

The survey of 1030 residents by the property research company also revealed 80 per cent of respondents said now was a good time to buy.

Real Estate Institute of South Australia president Greg Moulton said the market in South Australia, while not going to "take off'', was definitely on the increase.

"A lot of the property that has been sitting on the market through 2012 has sold really well through 2013,'' he said.

"Now there is some demand again and as soon as there is demand it usually means the prices increase.

"Absolutely do I think they are going to increase. Are they going to run away?

"No, the only question mark is the effect of the election in September.''

He said the survey of consumer confidence was critical to the industry.

"The only reason we have price rises is consumer confidence . . . without the consumer being confident in the product or in the economic and political conditions you aren't going to get price rises,'' he said.

RP Data national research director Tim Lawless said the survey revealed a substantial increase in consumer expectations in the housing market but figures released by the Valuer-General show no overall increase in property prices in the past year.

This lack of movement should reduce upward pressure on bills linked to property prices.

The valuations dictate property charges such as council and sewerage rates, emergency services and Natural Resource Management levies and land taxes.

In metropolitan council areas, Norwood Payneham and St Peters recorded the biggest rise, 1.8 per cent, to a median $580,000.

Adelaide City Council recorded the biggest drop, down 2.6 per cent to $740,000.

Independent State MP and former Valuer-General John Darley urged property owners to check their valuations to see if they had grounds to object.

Objections can be made after June 30.

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