The trajectory of Australia's housing crisis is set to escalate

Australia’s housing crisis yet to peak

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Experts at RMIT University projecting that the situation will intensify well into the year 2025.

This forecast underscores a deepening challenge in the Australian housing sector, marked by persistent issues of affordability and supply.

Dr. Peng Yew Wong, a senior lecturer in the School of Property, Construction, and Project Management at RMIT, points out that the current shortage in housing supply is not a problem that can be swiftly resolved. This enduring deficit in supply means the housing crisis will increasingly impact Australians across various demographics.

Wong highlights a unique trend in the market, unseen since the 2008 Global Financial Crisis. Despite the backdrop of high living costs and steep mortgage repayments, house prices are expected to continue their upward trajectory. This ongoing rise in property prices is set to reach new heights, with predictions suggesting that Australian house prices will surge to record levels in the final quarter of 2023. Such an increase spells a more challenging landscape for homebuyers, particularly those looking to enter the market for the first time.

“This will present a difficult conundrum for homebuyers, and especially prospective first homebuyers,” Wong emphasizes. The issue is further compounded by a predicted shortfall in housing. Over the next five years, Australia is expected to face a deficit of 106,300 new homes, a situation that will inevitably fuel further price increases.

Amidst this challenging scenario, Luminur Projects emerges as a beacon of opportunity and solutions. With its access to top-performing developers and a broad array of properties, Luminur Projects is uniquely positioned to meet the diverse needs of first-home-buyers, owner-occupiers, investors, and Self-Managed Super Funds (SMSF). This access opens doors to a range of suitable housing options, offering a ray of hope and practical solutions for those navigating the complexities of Australia’s intensifying housing crisis.

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