“Sydney is facing an under-supply of housing that isn't meeting the demands of a growing population,” Craig Adams from Dunn & Horne says.
Australia is likely to devote a higher share of its GDP to housing than before, or risk a "further adjustment" in housing prices and rents to balance supply and demand.
“Unlike most countries rocked by the GFC, Australia did not have an unsustainable surge in housing investment in the middle years of the 2000s resulting in over-supply of housing.” Mr Adams says.
He said the rate of increase in homes has been below the average of the past 50 years, while population has increased at its fastest pace over the same period of time.
"If we are to build more dwellings, we need to ensure that planning guidelines and infrastructure provision can accommodate this. This will pose challenges for all levels of government," he said.
With an over populated city, housing prices are rising due to the demand. “This is the perfect time to sell and possibly gain on investments and take advantage of a quality market,” Mr Adams states. Since the start of the year the Liverpool postcode has seen 156 residential sales, a sign the market is extremely strong.
The NSW Government population projections suggest Liverpool will reach a population of about 266,000 people by the year 2033. This is a massive increase with the current population counted at just 44,767 residents. With an average growth of 9618 people each year, the property shortage crisis is expected to hit Sydney’s west harder than anywhere else.