OREANDA-NEWS. Fitch Ratings says in a new report that growth in Australia's property prices has not been uniform across all regions. In particular, the 14 regions in Sydney have experienced prolonged growth, with only one region experiencing a single quarterly price decline since September 2012. This is in contrast with the rest of Australia, where prices have been stable.

Fitch analyses changes in property prices based on regions, as it highlights where borrowers may experience a downturn in the housing market, which could lead to deterioration in mortgage performance.

The current rate of increase in property prices is similar to that of the 2001-2003 boom, but growth is less widespread. In the 2001-2003 boom, by number of regions, an average 95% of Australia experienced property price growth compared with 60% during the current boom.

Fitch's ratings of Australian RMBS and covered bonds factor in property price movements, with Fitch applying a 50% credit to property price increases while taking into account 100% of any property price decrease. A market-value decline of between 56.6% to 62.3% is applied to properties in Sydney, in a 'AAAsf' stress scenario, to capture any extreme movements in property prices.

The full report, which is part of Fitch's "Asia-Pacific Structured Finance Chart of the Month" series that highlights topical issues in the region, can be found at www.fitchratings.com.