Australia’s biggest city has a tough battle ahead, as one of the country’s largest property developers has claimed that Sydney’s chronic supply shortage will take some time to correct.
Stockland chief executive Mark Steinhart said that despite efforts to release land for the construction of new dwellings, it might be a while before the undersupply problem is properly addressed.
"It will take probably four or five years to address the undersupply in Sydney," Fairfax
quotes Steinhart, who spoke at a property forum on Wednesday.
"The only way you can do it is through the release of land and through densification, and that's certainly the approach governments are taking, but it takes time."
Every major city in Australia is facing supply issues according to Steinhart, however Sydney’s is by far the most prominent.
Industry bodies, such as the Housing Industry Association and the Property Council of Australia have been breathing down the neck of the government for months now, urging them to remove the roadblocks hindering the construction of new dwellings and putting pressure on prices.
Although according to Fairfax, Steinhart said Australians shouldn't expect the recent housing market boom to continue and that prices would grow at a much more sustainable pace in the next few years. He expects Sydney prices to rise by about 5% a year, while Brisbane and Melbourne are likely looking at growth of around 4.5% and 3.5%, respectively.