by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
REIQ Journal : February 2010
In An upD ATE to its Residential Property Prospects 2009 to 2012 report, BIS Shrapnel says construction of new medium and high-density housing has fallen to the lowest level since 1991. Starts of only about 30,700 medium and high-density housing units were expected in 2009, representing an annual decline of 30 per cent. “While supply has plunged, demand remains very strong,” BIS Shrapnel senior economist Jason Anderson says. “Net overseas migration in 2008/09 was estimated to have been about 300,000 persons, a record high.” However, there is some relief for housing supply, with a strong upturn in detached house construction expected to come through in 2010. Owner-occupier purchases of new houses are running at a strong rate and this will alleviate the degree of undersupply in 2011. The number of first-home buyers in 2009 was running at a record level of about 200,000 and BIS Shrapnel says first-home buyers are likely to be adding to the pressure on rental markets. “Many qualifying first-home buyers were young adults living at home, accumulating the savings which are now required for home loans,” Mr Anderson says. “A first-home buyer moving out of the family home, and purchasing a former investment property, will have actually reduced the available rental stock.” BIS Shrapnel says this effect is part of the reason why rental growth remained solid in 2009. “ With the very low rate of medium and high-density dwelling construction in 2009, it is inevitable that rental markets will tighten considerably in 2010, and remain very tight in 2011,” Mr Anderson says. Rental markets to tighten further in 2010 and 2011 Industry analyst and economic forecaster BIS Shrapnel is anticipating rental growth around Australia will surge in 2010, following the period of more moderate growth in 2009. It says over the three years to 2012, national average yearly rental growth will be 5.8 per cent, resulting in rental households passing an extra $1.9 billion to landlords each year. By BIS Shrapnel REIQ Journal February 2010 36 Industry Research
December January 2010