An expert panel at an economic summit in Sydney this week see Australia’s housing supply shortage continuing, further fuelling property prices.
Property was a key topic at the Bloomberg Economic in Sydney on Tuesday.
A panel of property experts at the summit included federal MP Kelly O’Dwyer, Crown Group chief executive Iwan Sunito, Jones Lang LaSalle Australian head of research David Rees and ANZ senior property analyst David Cannington, followed an address from Treasurer Joe Hockey.
The panel reached a consensus on Sydney’s housing shortage with each panelist stating demand significantly exceeded housing supply in Sydney.
Crown Group chief executive Iwan Sunito said a global shift in the way people live would continue to drive demand for housing in Sydney.
“People are increasingly downsizing, driving demand for apartments,” Mr Sunito.
A report this week by RP Data for Aussie Home Loans found that apartments sold above their listing price on 46 per cent of occasions.
Sydney was the hottest market, with 59.4 per cent of houses and 63.6 per cent of apartments selling for more than their listing price.
Melbourne also ran hot in 2013/2014, with 50.4 per cent of houses and 45.4 per cent of apartments selling for more than their listing price.
Earlier this year, Reserve Bank head of financial stability Luci Ellis said inner-ring suburb housing demand would surge as jobs become increasingly centralised around CBD areas.
“In fact, many of the inner areas have become even greater job magnets in recent years; some middle and outer areas added people, but not so many jobs,” she said.