Construction problems and a rental crisis will continue to push people to buy established homes
Recovery in prices for established homes has taken a lot of people by surprise but highlights that market dynamics aren’t purely driven by interest rates.
Population growth and a housing shortage are both now outweighing increases in the cost of finance with Australian house prices having increased by another 0.5 per cent in March.
Will Australia follow the US rental property trend?
In the US, large companies currently own five per cent of rental properties. This asset class is referred to as “multi-family” in the US and is the largest property investment type in that country.
Like most people in the property industry, I was dismayed that a key revenue item in the recent Victorian budget was to increase land tax payments for investment properties.
Regional Australia was the standout during the pandemic with the virus sparking the greatest movement of people to these parts of Australia ever recorded.