 Enzo Raimondo, Herald Sun
THE release of the ABS December quarter dwelling commencement figures confirms that supply shortage has been the prime factor driving price growth and represents the biggest threat to affordability over the next five years.
In the past five years Melbourne|s rate of population growth has increased by 84 per cent and, according to the Australian Bureau of Statistics, the number of dwelling commencements in Victoria has increased by 22.4 per cent (seasonally adjusted).
The significant increase is very welcome and if it continues for the next few quarters it will have a beneficial effect on affordability and prices.
The release of the REIV property update for last year shows that as the population has increased, so have house prices.
The median price of a house in Melbourne in 2009 was $465,000.
Since 2006 the Melbourne median house price has grown by 23 per cent compared with 4 per cent for the period between 2003 and 2006.
The supply shortage became particularly protracted last year, as the improving economy brought life back into the market.
As a result, six of the top 10 growth suburbs for the year had a median below $500,000: Dallas, Broadmeadows, Sunshine North, Highton and Croydon North.
In regional Victoria the median price of a house increased by 7 per cent, from $258,000 in 2008 to $276,000.
Within key regional centres the strongest growth in prices was found in Bell Post Hill, Highton and Hamlyn Heights in Greater Geelong, in Alfredton and Sebastopol in Ballarat, and in Strathdale in Greater Bendigo.
Because the REIV property update compares all sales last year with all sales in 2008, it doesn|t show the significant changes in demand towards the end of last year, as is evident in the REIV December property update available at www.reiv.com.au
REIV chief executive
Enzo Raimondo
www.news.com.au/money/property/supply-shortage-fuelling-house-prices-abs-figures-show/story-e6frfmd0-1225849084394 |
02.08.10
