Sydney and Melbourne are expected to have 8m inhabitants each by 2050. Where these people will live will have a huge impact on our property markets.
Increasingly, Australians are choosing to live in apartments; in fact the number of apartment dwellers has increased by 78 per cent in the past 25 years.
But some parts of Australia are allocated for apartments more than others – and this is having an impact on property prices.
The simple laws of supply and demand mean that prices in some locations are going gangbusters; while in others, prices remain depressed.
Good examples of this are Ryde and Parramatta in Sydney where development rates of 57 per cent and 38 per cent respectively are transforming skylines. In these locations, oversupply of apartments has kept a lid on prices
But, with Australia growing at a rate of over 400,000 a year, even this oversupply will be absorbed.
And, with construction of new apartments low, the end of oversupply appears to be getting closer-and-closer – putting a floor under prices.