Bendigo and Adelaide Bank’s Executive Retail, Dennis Bice, said the report shows there has been growth across a number of market sectors.

“The results underscore the old property adage that there really are ‘markets within markets’ both at different levels in different cities and in regional centres around the states and territories where good value and solid returns can still be found,” Mr Bice said.

The report also revealed an increase in the number of loans to first home buyers, which increased by 5.9 per cent to 25, 101 over the June quarter 2012, up from the June quarter of the previous year by 11.8 per cent.  

“People have been putting the big decisions, such as upsizing or downsizing their housing preferences on hold for some time now but there is evidence to suggest that activity in the property market is beginning to build again, said Mr Bice.  

“Investors are also seeing strong demand for rentals in the major centres with tight vacancy rates.

“The positive impact this has on rental returns, coupled with lower borrowing costs, should see a more active spring real estate season,” he said. 

“The report also finds that around Australia, residential investment property returns for three bedroom houses and two bedroom ‘other dwellings’, such as apartments and townhouses  show an average annual return over the past five and 10 year periods in the range of 6.6 per cent to 16.2 per cent*,” Mr Bice concluded. 

To read the full report, click here.

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Median weekly family income is now $1,560, compared to $1,493 in the June Quarter 2011. The average monthly loan repayment is $2,155 compared to $2,290 in the June Quarter 2011.   

Compared with the June quarter 2011 all Australian states and territories recorded improvements in housing affordability. The number of loans to first home buyers increased by 5.9% to 25,101 for the June quarter 2012 and by 11.8% compared to the June quarter of the previous year. 

The number of loans to first home buyers increased in all states and territories with the exception of New South Wales and the Northern Territory. 

Victoria was the standout, recording the largest increase in the number of first home buyers for the quarter, up by 23.5%.   Victoria also recorded the largest increase in the total number of loans, up by 16.0%.   The total number of loans Australia-wide (excluding refinancing) increased 8.9% over the June quarter to 91,982. 

General Manager of Adelaide Bank, Damian Percy said: “The figures seem to indicate that many people are now deciding to get on with their lives and are again making decisions about their housing choices – regardless of continuing volatility in global financial markets.” 

“I think simple timing is a factor.  Age waits for no-one. Older people in bigger houses make lifestyle choices to ‘downsize’, younger people have growing families and need to upsize.  The imperative to ‘right-size’ your dwelling at a particular life stage can drive decision-making to an extent. 

“Many people have been delaying these important choices and housing decisions for nearly five years.   

“In June 2011, 35.4% of family income was required to meet home loan repayments. In the June Quarter 2012, the figure had come down to 31.9%, a 3.5 percentage point drop. 

“This is still a significant chunk of family income, but moving nonetheless to relieve some of the pressure on household budgets. Appropriate and affordable housing underpins stable and successful communities and we forget this at our peril.  

“In terms of rental costs across the nation, we are seeing stability in most cases and mounting evidence to suggest that in some areas, it can now be more affordable to meet the cost of mortgage repayments over renting,” Mr Percy concluded.

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Further to this news, Bank of Cyprus Australia is also pleased to announce record-breaking results for 2011. The significant features of the 2011 results show an increase in customer account numbers by 21 per cent. Mr George Tacticos, Managing Director Bank of Cyprus Australia said “Given the difficult economic environment experienced internationally and even domestically, this is sound achievement and one we are most proud of. This reflects our relationship-based banking that is an attractive component of our business model.”

Other key features of the 2011 results include a 15 percent increase in deposits and a net profit after tax up 27 per cent. The 2011 results confirm the sentiment that Bank of Cyprus Australia is a strong, successful and viable bank.

Such significant achievements give reassurance to Bank of Cyprus Australia Limited customers and staff alike that the Bank is ready to propel itself into a new era of strong growth with Australian parent Bendigo and Adelaide Bank Limited. Under the direct leadership of Mr Tacticos, who was at the forefront of this deal, Bank of Cyprus Australia Limited will follow its community-based banking specifically directed towards the Hellenic-Australian population.

“Like us, Bendigo and Adelaide Bank’s staff and vision is driven by how its business can ensure prosperity for all its key stakeholders and inturn strengthen the community. We are proud of this new affiliation, as we both recognise outstanding customer service and a connection to the community beyond just banking, as the fundamental building blocks of our success. We are here to support the community just as it supports us.”

Mr Tacticos continued “It is business as usual for all our 14 branches. Our customers will continue to deal with our people and our branches across Australia. The transition for everyone involved is minimal – we have always been an Australian bank and now we report to an Australian parent.”

In addition to Bendigo and Adelaide Bank Limited sharing the same principles, the financial future for Bank of Cyprus Australia Limited is now secured. Bendigo and Adelaide Bank Limited is a publicly listed company which is owned by more than 82,000 shareholders, with a market capitalisation in excess of 3.5 billion and $55 billion in assets.

Bendigo and Adelaide Bank, Managing Director, Mr Mike Hirst, said he sees good growth opportunities for the Bank.

“A good opportunity lies ahead for the Bank of Cyprus Australia, initially by giving customers access to Bendigo’s broad product offering, but also by supporting the businesses’ growth in a manner that is not constrained by funding or capital,” said Mr Hirst.

Mr Tacticos said “This phase is committed to providing the same level of support to the community through our devised financial services and through our proudly hospitable level of service. Our values remain the same and our doors are always open to all our customers and the community. We extend an open invitation to all.”

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