Housing Demand Likely To Come Down To Sustainable Levels

The price of detached houses in Sydney rose by 15.2 % whereas unit prices spiked by 11.6 % in the year 2013. This, however, does not deter analysts from believing that the kind of mini boom that Sydney has witnessed lately might fritter out from here on. An article on the website news.com.au discusses the situation.

Analysts feel that pent-up demand due to low supply had pushed housing demand so high. Moreover, the hike was not that high in ‘real’ terms because it succeeded a few cycles of fall. There is a widespread belief amongst people in the know that growth will be pretty modest in the year 2014 and will most likely close in on 5-6% instead of the really ‘unsustainable’ 12-14%

You can read the original article here.

Do you see unit growth outpacing growth of detached houses frequently from here on?