Property Demand Outdoing Supply in Australia
Time on Market is steadily decreasing for properties across Australia. The same is beautifully established by Cameron Kusher in an article for the website Property Update.
Properties selling very fast
Kusher suggests that the properties are selling faster than they are being added. To boot home his point, he takes up an RP Data listings index which says that 243,941 residential properties are added to the sales table over the four weeks running till 30th March 2014. Amongst this, 47.805 properties are being newly listed.
New listings increasing, total listings falling
Now for the point Kusher makes- while the newly listed properties are 18.9% higher than the figure available same time last year, total number of listed properties are -3.8% lower.
What can this be put down to, argues Kusher? – Simple! Properties are being added at a good pace but the selling bit is happening at a very fast pace, too.
Across capital cities
Barring Canberra, all the capital cities are following the trend. Sydney and Melbourne are absorbing properties in a jiffy. It is another thing that in comparison properties are selling in Sydney at a much more hectic pace.
You can read the original article here.
An alternate perspective
Let me offer you an alternate perspective. The Data says that the total number of properties is -3.8% lower than they were around a year ago. Considering that the figure is 243,941 now (four weeks running till 30th March 2014), the figure must have been 253,576 a year ago (calculated almost precisely).
Now, the number of newly listed properties has increased by 18.9%. Considering that it is 47,805 now, it must have been 40,172 a year ago.
What does this clearly demonstrate? It shows that total number of on-sale properties (apart from new listings) was (253,576 – 40,172) a year ago. Now, it is (243,941 – 47,805).
After calculation: On 30th March 2013, we had 213,404 on-sale properties (apart from the new listings). Presently, we have 196,136 such properties. The difference is a distinctly noticeable 17,268 properties.
Does the figure leave anything to be said or proved? Well pointed out, Mr. Kusher!
Do you think construction sector can keep pace with the property demand?