New homes record in Australia10 September 2015 by News Desk
The number of new homes planned in Australia has risen to record levels with over 200,000 approved in the past year, 40% higher than two years ago.
While this record level of home-building has created an over-supply of properties in some capital cities and driven down prices, some major cities are suffering an under-supply that continues to force prices up.
But industry observers say this imbalance will level out over the next two years and the property market in Australia will stabilise.
Around 220,000 new homes are currently being built across Australia representing housing growth of around 1.4% a year. Across the country, Victoria has the highest risk of oversupply, while New South Wales and Queensland will have an under-supply of homes for a few years to come.
Changing populations in the various states has added to the property imbalance with some states seeing a growth in population – leading to under-supply and rising prices – while other states have seen their population fall – leading to over-supply and falling prices.
Victoria and New South Wales have seen a rise in population but while home-building in Victoria has matched the increase in the population with 307,000 new homes New South Wales has added just 214,000 new homes resulting in under-supply and higher prices.
In Queensland and Western Australia, there has been a slowdown in population growth that has seen a re-balancing of property supply.