Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Housing supply crisis worsens

Staff Reporter 4 minute read

Staff Reporter

The Australian property market is currently recording about 4.1 months of effective housing supply, new data has found.

According to RP Data’s latest research, Australia is currently in the midst of a terrible housing shortage, with Melbourne the worst sufferer.

RP Data’s research analyst Cameron Kusher found Melbourne has the lowest current effective supply at 2.8 months, while Perth and Brisbane have the greatest effective supply recorded at 9.0 and 5.9 months respectively.


The Perth results indicate that this market remains consistent and has recorded the greatest effective supply amongst all of the capital cities since the beginning of 2007.

According to Mr Kusher, the Perth market has been recording a poor market performance for much of the period following the significant surge in property values recorded in the city between 2005 and 2007.

He said that since that time, sales volumes have become sluggish and clearly, a significant volume of properties have been available for sale which has resulted in an elevated level of effective supply.

The soft market conditions within the city are reflected by the fact that on average there was 7.6 months of effective supply in the Perth market - property values increased by 4.4 per cent since the beginning of 2007.

“Melbourne on the other hand has the lowest effective supply amongst major capital cities (2.8 months) and recorded one of the strongest levels of growth in values between the start of 2007 and August 2010 increasing by a total of 51.2 per cent; the strong market conditions over this timeframe have resulted in increasing demand for properties and as a result, those listed for sale have been being rapidly consumed by the market,” Mr Kusher said.


Housing supply crisis worsens
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.



more from the adviser
Blake Albones Bank announces new head of home lending distribution

MyState Bank has hired the CEO of RateOne and former NAB head of ...

Sydney Sydney mayor launches business support, calls for JobKeeper

Sydney’s mayor has urged the federal government to resurrect Jo...

mortgage payments money Banks accused of bias against BNPL in lending process

An executive from buy now, pay later provider Zip has echoed repo...