Victorian house prices ease with new developments
A boom in housing developments across Victoria is easing pressure on house prices, according to the latest report by the National Housing Supply Council.
Real Estate Institute of Victoria chief executive Enzo Raimondo said from 2009 to 2011, the gap between housing supply and demand was reduced from 18,000 to 10,000.
"Whilst the market is also affected by a range of other factors - the rate of economic growth, unemployment, interest rates and levels of consumer confidence - if there is a shortage of stock, this also results in pressure on prices," Mr Raimondo said.
"This report now shows that the gap between the underlying demand and supply has eased, primarily because the number of new homes being constructed has increased."
First time buyers may be interested by the report's findings, which come off the back of the state government's announcement last week of the development of six new suburbs in Melbourne.
The new suburbs, to be developed over the next 30 to 40 years will be located at Lockerbie North, Manor Lakes, Merrifield West, Rockbank North and Diggers Rest.