Housing affordability has been under fire for some time as property values continue to rise, but the Reserve Bank has pointed out housing supply and existing government policies as the major challenge in residential property ownership, as low number of properties go on sale despite increasing building approval numbers and high auction clearance rates.
Dwelling approvals have risen by 1.2% from the previous month and is 6.8% higher than the same time last year, according to the Australian Bureau of Statistics. Housing Industry Association economist Geordan Murray believes that adding supply will help resolve the issue of housing affordability, as house prices continue to rise despite producing lesser properties. Properties that were sold nationally was 5.4% lower than the previous week. Queensland was singled out as the strongest state in new building construction with a 2.7% increase in August.
Read more about this on the Property Observer website.