Australia is a big country. It overflows with resources and it seems it's going to continue on developing its economic success. The housing units in Australia is on its way to overflowing. Can Australia cope with the problem of teeming house units? According to abc.net.au, "A leading economic forecaster is warning that Australia's housing shortage could evaporate by 2018, putting downward pressure on property prices."
A lot of analysts have argued that due to the tireless housing shortage for the past decades, the outcome was the oversupply of housing units. If you compare Australian home prices over nations, the houses in Australia is more expensive. Despite the teeming supply of housing units, BIS Shrapnel is till predicting the current residential development boom will erase that deficit nationally by 2018 as stated in a report by abc.net.au.
The housing market heading to oversupply in Australia will soon be eradicated because of the low interest rate. It will provide buyers and increase the demand for housing units higher. The oversupply of housing units will not remain a problem in Australia since the country is facing a higher economic growth. According to businessspectator.com.au, "Population growth slows while construction activity remains relatively strong, new supply will begin to outpace demand."
The oversupply as analysts predicted will shift into a mild oversupply by the year 2018. There is still much to conquer in order to minimize the overflowing supply of housing units. Other hindrances for the overflowing supply is due to a weaker population growth. Migration to other nations have also contributed to the rising of the number of housing units available as well.
Despite the economic and population challenges, the analysts are still positive that it will be lowered through time and through years. The demand will go higher and the oversupply will not pose a problem anymore for Australia. Regardless of the outcomes, Australia's economy is stable and reliable despite the threat of overflowing housing units.
