"Tio end" property slowing down

Property owners in lower to middle income markets may finally be starting to see higher percentage increases than their top end counterparts, according to new figures.

MortgageSA figures suggest house price growth of around 27 percent between January and November this year, according to Gavin Southwell, the company’s sales director.

"While this is lower than the house price index figure of 32 percent, the discrepancy suggests a two-speed property market with higher price growth in the lower to middle income markets, while the middle to upper income markets have experienced somewhat more temperate growth,” he explained.

"At last we are seeing a welcome trickle down effect to lower-priced properties as they are starting to catch up.

"But now with some price resistance at the upper end, we expect to see lower priced properties make good returns. It's a trend we expect to see carry on throughout 2005."

Southwell says that a shift in purchasing dynamics is becoming apparent in the property market.

"Although house prices are still increasing at quite a rate, the number of sales has reduced. I think this is a result of two factors: in some areas there is a shortage of stock while in other areas there is some price resistance as some sellers have overblown notions of the true value of their properties."