According to The Australian Financial Review, property prices rising at an annualised rate of 20 per cent in Sydney and Melbourne have spurred developers to start bidding for housing project sites again but also have raised serious concerns about housing affordability.
Melbourne home prices grew 2.3 per cent in just 31 days – the fastest rate in 10 years – while Sydney was up 1.7 per cent for the month, a clear indicator that the Reserve Bank's three interest rate cuts have motivated buyers and jacked up auction clearance rates.
Developers are starting to read the tea leaves on the future of housing supply by bidding on sites for new apartment and housing projects.
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