Australian property prices to increase for the next 'five to ten years'

Prices in the Australian property market will continued to appreciate due to a shortage in demand for new builds and land, it has been claimed.

The cost of residential housing down under is likely to remain on an upward curve as demand for property soars amid a shortfall of new builds within the country.

According to Caryn Kakas, executive director of the Residential Development Council in Australia, the only way to reverse the trend would be to build more houses.

She claimed that in order to keep up with demand a total of 150,000 properties needed to be built each year.

Ms Kakas continued: "The only way to stem the increase in home prices is to meet the backlog. That's going to take at least five to ten years. We're going to continue to see price growth in the market."

The latest RP Data-Rismark National Home Value Index demonstrated an average increase of 1.8 per cent in property vales across the country during February.

Like this? Then share with your friends and colleagues!