Trends in the Australian residential property market

23 March 2010

Australia is facing a significant under-supply of housing that is not keeping up with our population growth.  This imbalance, according to the Reserve Bank of Australia, can only be fixed if there is a substantial increase the supply of new housing and if a larger share of GDP is allocated to housing.

Housing trends show an under supply in Australia and rising house prices will continue

With an under supply of housing, house prices are continuing to rise

Australia’s population is expected to reach 36 million by 2050 (currently 22 million). About 75 000 new houses need to be built each year to keep up with the growing population.

Another consequence of the under-supply of housing is that housing prices continue to rise – in 2009 housing prices rose by 10 per cent and many industry pundits agree that house prices will continue to rise if the imbalance is not addressed.

Despite the housing shortage, a Real Estate Institute of Queensland’s Market Monitor research publication released in the March quarter found that the number of preliminary sales under $500,000 dropped by 22 per cent in the December quarter 2009. This is said to be the result of a reduced number of first home buyers in the market (REIQ news release ‘Buyers cautious as market conditions change, 8 March 2010).

Rising house prices, falling sales in some markets? What does all this mean for those selling homes in the western suburbs of Brisbane?

Regardless of market trends, the best way to ensure a good price for a property is to show off its best features. Read the selling tips on my website for ideas about how to spruce up a property ready for sale. Buying is an emotional experience as well as a rational one: help buyers to fall in love with your place.

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