Australian house prices ‘will rise in Sydney, Melbourne’
The interest rate rises of recent months are not expected to dampen the Australian property market in Sydney and Melbourne.
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.
Steve Douglas is the co-founder and Managing Director of Australian Taxation Services (ATS), established in Singapore in 1995.
www.australiantimes.co.uk/australian-property is sponsored by ATS.
ATS provides specialist taxation services to Australian expats living overseas and people of any nationality investing in Australian property.