Australia is heading for a housing glut: For many years, one of the fundamental factors cited as a driver of Australia's persistently high and rising house...

Australia is heading for a housing glut: For many years, one of the fundamental factors cited as a driver of Australia's persistently high and rising house prices has been a shortage of supply of new dwellings relative to strong growth in demand. The story, which I think is correct, was that Australia had experienced an extended period of very rapid population growth driven by both natural increase and, more importantly, strong immigration inflows. This has driven ongoing demand for new houses, whether the additional Australians are buyers or renters, the new demand is there. While this unrelenting source of demand has been unfolding, there has been a simultaneous under-building of new dwellings for a range of reasons, which for the purposes of this article are not all that important. Suffice to say, in the period from around 2005 to 2013, there were simply not enough new dwellings being built to match the growth in demand. For more click here: (VIEW LINK)