Rate rises cooling property market down under

Interest rate rises in Australia are helping to cool the country's property market, after concerns were expressed about the danger of it over heating. The National Australia Bank Residential Property Index for December fell to 27 points, down from 44 points in November And many industry commentators and economists have claimed that the slowdown in growth is a sign that interest rates are contributing to cooling the market, those looking to buy property in Australia may be interested to learn. "National house price expectations have now turned negative. Tight credit conditions and rising interest rates continue to be identified as the main impediments to new residential developments and existing property sales," a report from the bank said. In total, there were four increases to the interest rate over the course of last year, rising from 3.75 per cent to its current level of 4.75 per cent. A recent survey from the national bank shows that prices are expected to drop by 0.5 per cent in 2011.