Another Boom in Brisbane?

March 31st, 2008 · 1 Comment

Australia’s housing crisis is expected to worsen considerably during the next five years, with property prices forecast to rise by as much as 40 per cent.

With housing affordability already at record lows, an annual construction shortfall will put further pressure on rents and house prices.

Rising interest rates has compounded the problem, with most choosing to wait before buying or building property. This means that when rates stop rising, or start to fall, there is likely to be a surge in demand which could result in another property boom.

When this demand does come, it will be very very strong.

A shortfall in housing stock has been one of the factors that has driven very strong growth in house prices over the past year.

In the short term, higher interest rates mean that the housing shortage is probably going to become more acute before starts to turn around.

Let’s hope you are a happy homeowner by that stage and not looking at similar houses for twice the price!

http://news.ninemsn.com.au/article.aspx?id=59380

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