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In stark contrast to reports that Australia faces a severe undersupply of housing, Hometrack today warned that building activity is running well above demand.
Brendan Darcy, CEO of Hometrack, said the valuer’s analysis indicated Australia may already have an oversupply of housing.
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“We estimate there are at least 10 million dwellings in Australia, compared with ABS data showing occupied dwellings of 8.3 million,” he said.
Mr Darcy said that while the ABS calculated dwellings based on ABS census data – which counts only occupied dwellings – Hometrack’s method also included housing awaiting sale or development, vacant dwellings, second homes and abandoned homes.
Additionally, Hometrack also pointed out that annual population growth translated into demand of approximately 120,000 new dwellings per year – well below residential building approvals over the past six years.
“This points to a build up of excess stock of housing,” Mr Darcy said.
