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Home Grant Rush Props Up Property
18.05.2009 |
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18 May 2009
By: Sanna Trad, The Australian
FIRST home buyers flocked to the market at the weekend following the Rudd Government|s decision to extend their boosted grant.
Despite warnings from property market experts that the increased grant had artificially inflated prices at the lower end of the market, hundreds of first home buyers eager to enter the market boosted auction clearance rates across the nation, The Australian reports.
Australian Property Monitors head of research Yvonne Chan said first home buyers were holding up the property market.
"Clearance rates have been consistently at a high level for the last few months and it|s been driven by first home buyers," she said.
At the weekend, auction clearance rates remained strong in the major markets, with Melbourne recording a rate of more than 70 per cent for the third week in a row.
The clearance rate of 71 per cent was 14 points higher than the figure recorded for the same weekend last year and the same as the previous weekend.
In Sydney the clearance rate was 66 per cent, the same as the previous weekend and 17 points higher than the corresponding weekend last year.
The boosted grant was extended to September 30 in last week|s budget. After the deadline, the grants will be reduced from $14,000 to $10,500 for existing homes and from $21,000 to $14,000 for new homes until the end of the year.
SQM research director Louis Christopher said first home buyer demand would start to dry up by the third quarter.
www.news.com.au/business/money/story/0,28323,25497072-5013951,00.html |
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02.08.10
