One market researcher believes concerns about oversupply in Sydney's inner city suburbs are much more widespread... Regional WA starts the year strong...
"No doubt" around Sydney oversupply concerns
While concerns about oversupply have been raised in the past about Sydney’s inner city suburbs, one market researcher believes the issue is much more widespread.
According to analysis by market researcher and buyers’ agency Propertyology, 18 of Sydney’s 43 local government areas currently have a property supply pipeline that is 100% higher than historical averages, while another 10 Sydney LGAs have a pipeline of supply that is 50% above what is needed.
Propertyology’s figures claim the average number of new dwellings approved in Greater Sydney each year for the 10 years ending 2011 was 22,555, while in the four years from 2011 – 2015 approvals have averaged 38,225 per annum.
Simon Presseley, market analyst with Propertyology, said Sydney’s current supply pipeline is out of sync with demand.
“Sydney is about to enter new territory. Its average annual population growth rate has consistently hovered around 1.6% but supply is really ramping up – things are out of sync,” Presseley said.
“The trend is not abating either. A further 51,106 dwellings were approved in 2015,” he said. “The official data analysed by Propertyology leaves us in no doubt that several pockets of Sydney will become over-supplied.”
Regional WA starts the year strong
After seasonal conditions saw the WA regional markets perform poorly over the December 2015 quarter, the three months to March 2016 have been a different story with figures from the Real Estate Institute of Western Australia (REIWA) showing regional house, unit and land markets outperformed their metro counterparts.
“It’s really pleasing to see that regional WA’s overall median price lifted 1.3 per cent over the quarter, and looking at houses, units and land individually, there was notable growth in all three areas,” REIWA president Hayden Groves said.
“In particular, units experienced the biggest quarterly growth in median price, lifting six per cent. This can mostly be attributed to the Mandurah-Murray region which saw its median unit price improve significantly to $390,000 over the quarter, from $320,000 in the December quarter 2015,” Groves said.
(Your Investment Property)
While concerns about oversupply have been raised in the past about Sydney’s inner city suburbs, one market researcher believes the issue is much more widespread.
According to analysis by market researcher and buyers’ agency Propertyology, 18 of Sydney’s 43 local government areas currently have a property supply pipeline that is 100% higher than historical averages, while another 10 Sydney LGAs have a pipeline of supply that is 50% above what is needed.
Propertyology’s figures claim the average number of new dwellings approved in Greater Sydney each year for the 10 years ending 2011 was 22,555, while in the four years from 2011 – 2015 approvals have averaged 38,225 per annum.
Simon Presseley, market analyst with Propertyology, said Sydney’s current supply pipeline is out of sync with demand.
“Sydney is about to enter new territory. Its average annual population growth rate has consistently hovered around 1.6% but supply is really ramping up – things are out of sync,” Presseley said.
“The trend is not abating either. A further 51,106 dwellings were approved in 2015,” he said. “The official data analysed by Propertyology leaves us in no doubt that several pockets of Sydney will become over-supplied.”
Regional WA starts the year strong
After seasonal conditions saw the WA regional markets perform poorly over the December 2015 quarter, the three months to March 2016 have been a different story with figures from the Real Estate Institute of Western Australia (REIWA) showing regional house, unit and land markets outperformed their metro counterparts.
“It’s really pleasing to see that regional WA’s overall median price lifted 1.3 per cent over the quarter, and looking at houses, units and land individually, there was notable growth in all three areas,” REIWA president Hayden Groves said.
“In particular, units experienced the biggest quarterly growth in median price, lifting six per cent. This can mostly be attributed to the Mandurah-Murray region which saw its median unit price improve significantly to $390,000 over the quarter, from $320,000 in the December quarter 2015,” Groves said.
(Your Investment Property)
