Australian property prices in Sydney and Melbourne will continue to rise in the coming months in spite of recent interest rate rises, it has been suggested.
National project marketing group MLG said this will occur as a result of severely restricted supply in the Australian housing market, the Sydney Morning Herald reported.
New South Wales (NSW) managing director Chris Freeman said the market in Sydney is "grossly undersupplied" in comparison with the city's expected population growth.
"'It is a national phenomenon, but NSW is a standout as the state is actually approving significantly less dwellings than it was 20 years ago while population growth is around 130 per cent higher," he told the news provider.
Just one Australian property approval occurs for every four-person increase in population, Mr Freeman added.
This results in strong growth in prices from exceptional demand, he explained.
The Reserve Bank of Australia this week increased the cash rate by 25 basis points to 4.25 per cent.
Posted by Steve Douglas
National project marketing group MLG said this will occur as a result of severely restricted supply in the Australian housing market, the Sydney Morning Herald reported.
New South Wales (NSW) managing director Chris Freeman said the market in Sydney is "grossly undersupplied" in comparison with the city's expected population growth.
"'It is a national phenomenon, but NSW is a standout as the state is actually approving significantly less dwellings than it was 20 years ago while population growth is around 130 per cent higher," he told the news provider.
Just one Australian property approval occurs for every four-person increase in population, Mr Freeman added.
This results in strong growth in prices from exceptional demand, he explained.
The Reserve Bank of Australia this week increased the cash rate by 25 basis points to 4.25 per cent.
Posted by Steve Douglas
