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Supply and demand

Supply and demand and its impact on property prices

The principle of supply and demand is a cornerstone of economic theory, dictating the behaviour of markets, including real estate. In essence, this principle theorises that the price of a good, including property, is determined by the balance between its availability (supply) and the desire of consumers to purchase it (demand). How supply and demand affect property prices Here are some different supply and demand ratios and their effects of property prices. High Demand, Low Supply: When there are more buyers than available properties, prices increase. This scenario often occurs in urban areas with limited space for new developments. Low […]

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Low property stock levels drive markets in Australia

Australia’s property market is facing a significant challenge: a notable decline in property stock levels. According to recent data, the number of homes available for purchase or rent has drastically decreased, intensifying the housing crisis. Treasury officials emphasize that this shortage makes it increasingly difficult for individuals to find suitable properties. Source: ABC, Australia’s housing crisis in 10 graphs, from the federal budget, 15 May 2024. The total value of residential dwellings in Australia has risen dramatically, and this surge is partly due to the low stock levels. Meanwhile, housing prices continue to escalate, as highlighted by the Australian Property Market analysis

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