Shortage of property in Australia set to push prices up

Property investors in Australia should prepare themselves for an increase in value of their property as the housing shortage continues to worsen, experts have predicted.

According to official statistics, within the next 20 years the gap between supply and demand for houses and apartments is set to grow from 100,000 up to 500,000 by 2029.

Among the regions which are expected to be hit hardest by the lack of property are New South Wales and Sydney, both of which could experience price booms as insufficient stock levels are met by huge demand.

A rising population and lack of new builds are being blamed for the property crisis that was exacerbated by the global economic recession, which forced many developers to abandon projects as they struggled to stay afloat.

However, despite rising prices representing good news for those already with property down under, it is causing a number of people in the country to be locked out of the housing market as they struggle to afford spiralling costs.

Earlier this week, the Reserve Bank of Australia raised interest rates for the second time this year.

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