The Australian property market has seen a glut in new build properties over the last few years as high interest rates, slow paced property markets and more recently stricter lending policies by the banks, have forced the industry into a dramatic shortage of new properties. This is all about to end according to the Housing Industry of Australia… and its about to end as soon as this year. Recent statistics released by the HIA states that the HIA forecasts the total number of completed homes in Australia will rise from 129,500 in 2009 to 139,200 homes in 2010. According to the HIA there were 141,000 completed homes before the onset of the global recession slowed construction and lending to the sector. Chief Economist of the HIA, Harly Dale says “The effect of the First Home Owners Grant boost, along with 49-year-low interest rates, will cause the housing sector to “grind out” a recovery in the middle of the year”.

Having stated that construction will rise, they still confirm that Australia will have a mass shortage of housing for many years to come. Harley Dale, said “Given the outlook for a modest rather than significant recovery in new home building, the shortfall between dwelling completions and underlying demand will exceed 50,000 dwellings per annum for some years to come.”

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