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28 January 2008

Economic Outlook for Property 2008

The following is an extract from the bi-annual ANZ Australian Property Outlook:

"The Brisbane property market is also booming, underpinned by a rampant state economy. Queensland continues to reap the benefits of the commodity boom and a buoyant labour market has boosted household incomes by a remarkable 11.5% over the year to September. A marked jump in infrastructure spending, solid investment intentions and healthy household cash flow suggest economic conditions will remain very supportive in 2008.

House prices accelerated in 2007 and were up an impressive 18% over the year to September. Price growth has been supported by tightening market fundamentals and a continued influx of cashed up interstate economic refugees. Sales growth has continued to expand strongly and, like Sydney and Melbourne, inner suburbs have outperformed.

Rental markets have continued to tighten and advertised rents are up a solid 18% over the year to September. In stark contrast to other states, Queensland’s home building industry is performing strongly. Residential building approvals have risen sharply since early 2006 and are currently at a 13-year high.

Nonetheless, dwelling supply is still falling short of underlying housing demand and the market is
expected to tighten further in 2008 increasing upward pressures on house prices and rents."

Good news for investors, particularly those seeking rapid capital growth. If you would like to read more on this report, follow this link to the ANZ website.

Yours in property.

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