Two recent events (Property Council breakfast on greenfield subdivision; UDIA breakfast on apartments) were, not surprisingly when you think / read about it, on the same wavelength on supply and demand questions.
Our take on both presentations is that assuming there are no significant changes in migration and tax policies affecting property:
- demand is likely to continue into the foreseeable future;
- difficulty in obtaining finance is likely to make a greater proportion of that demand become pent-up rather than met;
- the financing difficulties may dissipate in twelve to eighteen months;
- cost of product needs to be re-evaluated as it is adding to pent-up demand and is higher than should be the case;
- continuing land supply is vital to assist in choice and keeping Victoria competitive in the national housing market;
- the current situation is mixed for different housing products and in different areas;
- the housing market is diversifying with more home-grown apartment buyers looking for larger apartments but with two-bedders still being the ‘sweet spot’.
The next year or two should be interesting.