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Falling Fuel Prices Will Spur Property Market  
Released 27 September 2006

The Real Estate Institute of NSW President, Mrs Cristine Castle, today said falling petrol prices will spur the property market, particularly in Sydney’s outer suburbs where would be buyers have borne the brunt of interest rate rises and higher commuting costs. 

“Petrol prices above $1.40 per litre and two interest rate rises have reduced the disposable incomes of many young families with bread winners that commute from Sydney’s outer suburbs and they have taken a wait and see attitude to buying property in the past few months,” Mrs Castle said.

Australian Property Monitors research shows that both house prices and sales volumes were flat in the June quarter in places like:
  • Camden - Median house price $380,000 up 1.3%, volume down 26.8%. Volume for units down 33%;
  • Wollondilly Shire - Median house price $345,000 down 4%, volume down 2%. Volume for units down 55.6%;
  • Wyong - Median house price $306,000 up 0.3%, volume up 1.2%. Volume for units down 16.7%.
The research also shows that buyers in some areas of outer Sydney have had a strong preference for less expensive housing, such as units in:
  • Burwood – Median house price $597,000 down 9.6%, volume down 15.6%. Volume for units up 39.7%;
  • Liverpool – Median house price $365,000 down 4%, volume down 8.9%. Volume for units up 23.9%;
  • Penrith – Median house price $315,000 down 6%, volume up 0.9%. Volume for units up 33%.
“Buyers in the outer suburbs have been hardest hit by higher commuting costs, however, with fuel prices now falling to near six month lows and expected to remain around $1.10 per litre according to the Australian Bureau of Agricultural and Resource Economics (ABARE), the market activity in these areas should step up in coming weeks,” Mrs Castle said. 

Please direct all media enquiries to REINSW Communications Manager, Mr Nicholas Campbell, tel. (02) 8267 0527 / 0406 955 801.