Australian property 'expected to recover in 2012'

The majority of property markets in Australia are expected to undergo a recovery during 2012, according to a new report. Australian Property Monitors (APM) has released its State of the Market survey for December this year, noting overall during 2011 "housing markets entered a correction phase with income growth required to catch up with the finance requirements for home purchases". The organisation added that natural disasters, coupled with low confidence among consumers and a mixed economic performance for the country, have resulted in fewer buyers entering the Australian real estate market. However, APM is predicting a better performance in 2012, citing anticipated economic growth and rising demand for residential properties as two catalysts that can boost the sector. Meanwhile, the firm also expects more interest from investors over the coming 12 months and has asserted average house prices in the country will climb by between three and five per cent in this period. However, Professor from the University of Western Sydney Steve Keen recently predicted in an interview with the Sydney Morning Herald that Australian property prices will fall in 2012, stating the "acceleration of mortgage debt" will push values lower.