Matusik: There will be no property undersupply
Government predictions of a future housing undersupply have met some mixed responses over the last week, with property expert Michael Matusik explaining that there are a number of factors still to be considered.
While Matusik acknowledges that the number of new dwellings under construction has been slowing over the last year, he points out that the industry is still managing to survive despite varying market sentiment.
In the long term this means that - barring some sort of industry mishap - new residential properties will continue to be built for the foreseeable future.
The professional real estate advisor also points out that - while the birth rate has picked up and immigration is on the rise - the total population growth rate is still slowing down.
Coupled with the increasing age range of the local demographic - with 22 per cent of the nation set to be aged 55 and over by 2050 - and the point becomes clearer.
While Matusik does admit that the rental market "remains tight", he asserted that for every new arrival in Australia - born or immigrated - the industry will only need to produce 45 per cent of a house, rather than the 70 per cent put forward in the official report.