According to treasured, Scott Morisson, Australian housing, especially in Brisbane, Melbourne and Sydney, is getting more and more expensive. He adds that it is not actually a case of over-valuing but actually the result of the lack of supply. He has called for state and territory governments to reform zoning laws and to increase the supply of land as a move to make houses more affordable to hopeful buyers.
Supply issues are currently affecting the housing market by causing property prices to rise to the point that they are no longer affordable to the vast majority of buyers. However, real estate experts report that although locations such as Sydney and Melbourne are seeing exponential property price growth, other parts of the country are showing price increases that are as low as 2.5% from 2009 – 2015. In locations such as Sydney, there is a great shortage of properties that is causing the prices to rise. In fact, Sydney has been under-supplying housing for more than 10 years.
With state and local governments being slow to respond to the ever-increasing need for more houses, the prices rose due to the increase in demand. In fact, to catch up with the demand for Sydney housing, an additional 180,000 properties would be needed. Real estate experts say that development applications are seeing more approvals and in increase in construction can be noticed. This situation is pretty much the same with Brisbane as well as Melbourne. The demand continues to exceed supply and certain types of property, such as apartments are seeing more and more construction.