While the New South Wales property market experienced a rush of activity in the lead up to Christmas, the state’s peak industry body expects it to strengthen further once auction season resumes later this month.
According to the Real Estate Institute of New South Wales (REINSW), pent-up demand from homebuyers was momentarily masked by the lockdown but is now ready to reveal itself in full in the new year.
REINSW chief executive Tim McKibbin said 2020 saw home prices finish on an upward trajectory, with a “strong likelihood that 2021 will kick off with real momentum”.
“The restart of auction season is still a couple of weeks away, but expect listings to pick up toward the end of January and the start of February,” Mr McKibbin said.
“The shame is, it’s simply not enough.
“The fundamental undersupply of housing in the state’s key metropolitan and regional markets means demand, on a whole, can’t be satisfied.”
REINSW’s housing supply warning comes as new data from CoreLogic revealed an overall increase in Australian home values of 3 per cent in 2020.
Rental market also undersupplied
REINSW also noted that while the supply of houses to buy is constrained, so is the supply of places to rent in most markets.
“Vacancy across the board is tight, with only a few exceptions in markets overly dependent on international students, including select inner-ring suburbs,” Mr McKibbin said.
“Unlocking new supply must be a critical priority for Government at all levels.”
Mr McKibbin has called for the NSW Government to put an end to the rental moratorium that has been in place since late March 2020, in order to assist many mum and dad investors whose rental income has disappeared.
“In New South Wales, support for landlords in the form of the removal of the rental moratorium is just as important, perhaps supported by a landlord assistance package similar to those other progressive states have introduced,” he said.
With demand outstripping supply across the state, those who are in the market to buy might be eager to get the ball rolling.
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