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 Australia's
property market will benefit in the longer run from the recent interest
rate rise, it has been claimed.
Brian White, the chairman of real estate firm Ray White, said the decision
of the Reserve Bank of Australia (RBA) to hiked the Cash Rate from three
per cent to 3.25 per cent will help to stabilise the sector.
He remarked: "There's nothing worse than a market getting out of
control and the residential market has been remarkably strong over the
last four or five months."
A stable situation may help the Australian real estate market to grow
gradually without a boom-and-bust scenario arising, something that could
encourage those keen to invest in the country.
In the minutes of this month's board meeting released yesterday, the
RBA said it had raised the interest rate partly because a "sizeable
gap" has emerged between its relatively strong performance and the
weaker ones of other developed countries.
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Newsletter:
25 May 2012 2012 to 1 June 2012 - Dullstroom, Mpumalanga, South Africa
