Housing shortfall set to rise in Australia

Individuals looking to invest in property in Australia may be interested to hear that the gap between supply and demand has grown by nearly 100 per cent in the past year, Overseas Property Professional has reported.

According to a report by the National Housing Supply Council, in order to keep up with the high level of demand for property, new developments need to increase by over 30 per cent in the next 20 years.

The gap between supply and demand in Australia grew by 99,500 properties during 2008 to 178,400 the following year.

Among the worst affected areas include New South Wales and Queensland, which have shortfalls of approximately 60,000 each.

Earlier this year, experts predicted that the lack of property on the Australian market would contribute towards an increase in house values in the country.

A rising population and lack of new builds are being cited as the reasons behind the crisis, while the National Housing Supply Council report highlighted the length of time that greenfield developments are taking to complete as a hindrance to recovery.

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