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House prices tipped to grow 5-6 percent in 2010

House prices are tipped to grow about five or six percent in 2010, according to some of the nation’s top housing analysts.

Australia’s house prices grew 6.2 percent to September 2009, the latest Australian Bureau of Statistics data reveal, while investor demand and upgrader demand picked up in the last few months of 2009.

BIS Shrapnel senior project manager of residential property Angie Zigomanis, said growth will continue into 2010.

“I’d expect you’d see steady low-to-mid single digit growth next year,” Zigomanis told AAP.

Housing Industry Association chief economist Harley Dale said Australia would experience significant growth in housing by up to 25 percent through to mid 2011. He also supports predictions of about five to six percent growth in established homes next year.

“With prices, we’ll probably continue to get a little bit more growth over the next six to 12 months but probably not at the rate that we’ve seen over the last six months which has been driven a lot by the first home-owner base,” he said.