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Residential real estate in Australia is enjoying solid growth that isn't seen in other countries but won't enjoy the huge increases that occurred previously.
Fitch Ratings analysis found that while the property sector is enjoying steady growth, its days of massive gains are in the past, News Limited reports.
After property prices fell in 2011, they gained back some ground, climbing by 0.9 per cent last year.
The growth of the real estate market will be a slow process but analyst for Fitch Ratings Ben Newey said real estate in Australia is better positioned than much of the world.
He commented: "Housing is still relatively expensive in terms of affordability, but price growth will be stable in 2013, as the recent run of interest rate cuts works its way through the economy."
"Arrears rates will also remain flat through 2013, in line with projections for stable interest rates and low unemployment."
RP Data's Cameron Kusher recently said property prices are enjoying a period of sustainable growth.
He noted: "Home values remain below their historic highs across each capital city and have increased at an average annual rate of just 1.9 per cent over the past five years."
