No property bubble in Australia09 June 2015 by News Desk
Fears of a growing property ‘bubble’ in Sydney and Melbourne are unfounded, according to experts and industry observers.
Prices have risen considerably in the two cities in recent years, driven by growing populations and a shortage of new housing construction due to the global financial crisis. But this supply-side element is now easing.
“More new houses and apartments are now being built, interest rates are at an all-time low and the government is taking steps to ensure there is no housing bubble in Australia to destabilise the property market,” says Darrell Todd, CEO of thinkingaustralia.
Major infrastructure projects have concentrated on road-building in Sydney and Melbourne and there is currently a lack of good public transport links so buyers are increasingly being forced into new city centre developments.
“When planned new public transport links are improved, there will be an easing of housing pressure in the city centres. But don’t expect prices to fall any time soon”, says Darrell Todd.