Supply and Demand

Read this article, and it details a vision of the future from the past:

The HIA Building Better Cities Summit last week opened by describing a cartoon where first home buyers forlornly looked on as their desired home moved further away in each frame until it fell off a cliff.

That comic was published 30 years ago – before many of today’s first home buyers were even born.

Certainly does feel like today’s reality, not just for housing but almost everything these days. Australia is so expensive, and others confirm it. But having said that I still find it difficult to make a comparison when in another country, because I tend to buy cheaper options in Australia sometimes it feels on par. All I know is that the exchange rate is truly ridiculous now.

After reading this article though, it seems reasonable to blame all investors now who can afford to purchase all the houses, but not live in them. Whereas those of us earning a lesser salary are forced to rent from them. The article quotes undersupply as an issue, yet another article on the same site states that there may be a risk of oversupply:

In Sydney, the locations at risk of oversupply included the southern locations of Mascot, Zetland, Rosebery and Green Square.

“There’s significant gentrification of south Sydney industrial activity areas,” he said.

“A lot of apartments are being built all at once; we’re concerned about levels of development and whether it might saturate the market.

I personally don’t see this in my housing search. Or at least, there’s an undersupply of affordable apartments, if anything. People earning a wage that is considered ‘good’ still can’t afford to purchase these, let alone some average ‘Joe’ like me. Joe Hockey likes to show off he’s not an average ‘Joe’ I bet.

In any case, overall I tend to agree with Andrew Wilsom:

Domain Group senior economist Andrew Wilson said demand was at such high levels in Sydney that there was no risk of an oversupply.

“There’s plenty of demand in Sydney, particularly in the south,” he said.

“Green Square is a master-planned community and investors are riding a tidal wave into the market.”

Damn. Investors again.