The Sydney property market needs up to 10 new suburbs built annually in order to meet the growing housing shortfall, Raine & Horne has claimed.
According to the latest ANZ Australian Property Outlook, the average number of housing completions has declined by 25,000 per annum over the last decade.
In 1999/2000 there were 51,500 housing completions in Sydney and just 25,500 in 2009/10.
“Put another way, this shortfall equates to a failure to build the equivalent of up to 10 new Sydney suburbs per annum,” Raine & Horne chief executive Angus Raine said.
On a more positive note, Mr Raine said the housing shortage combined with interest rate stability, increased immigration and low vacancy rates, will keep Sydney real estate front of mind for investors.
Mr Raine is urging would be investors to buy sooner rather than later, and to consider quality homes that are handy to amenities such as shopping centres, schools, public transport and motorways.
"If you find a quality home that ticks plenty of boxes, then it is a fair bet you’ll have secured a property investment that can potentially generate consistent cash flow and long term capital growth.”