The Australian property market saw a change in the nature of its supply and demand during 2013, one expert has said.
Andrew Wilson, senior economist at Australian Property Monitors, commented that the market has, generally speaking, been “keeping under wraps” for the last three years. However, 2013 saw a change in the underlying nature of its supply and demand drivers.
According to Your Investment Property, he said that markets with strong underlying factors enjoyed a more successful 2013, while those with less strong ones performed weaker.
While this is not a particular revelation given that it is how housing markets tend to run in general, Mr Wilson noted that the difference is the sizable gulf between strong performing markets and flat markets. The former are isolated to just a few key markets.
The expert commented: “Markets have been headed the same direction more or less, but the gears have been different. There’s a multi-speed scenario unfolding in markets and there has been a divergence in housing market activity. Some markets have clearly been engaging buyers at a much higher level.”
Mr Wilson highlighted Sydney as a star performer in the property market. While other markets may have expanded at a more rapid rate, the substantial size of Sydney means it has been pushing up the entire Australian real estate market like no other location.
According to research from BIS Shrapnel, property prices in the Habour City have risen seven per cent over the year – a rise of the sort that has not been in Sydney for a long time. This growth is largely due to a severe housing shortage, similar to that seen in Perth and Darwin, which have experienced growth of six per cent and seven per cent respectively.
This follows news that self-build is on the up in Australia, with property seekers increasingly decided to construct their own homes. Figures from the Australian Bureau of Statistics (ABS) demonstrated that the number of loans given to owner occupiers to build new properties has hit its highest level since March 2010.