Are we at the start of the next property cycle?

When it comes to conversations amongst family and friends, Australian residential property is often top of the agenda. Where are prices heading? Should I buy now? What’s happening in the rental market? While we saw a short-term dip in prices, arguably, property prices are definitely back – currently standing at similar levels to pre-COVID pricing.

And while no one has a crystal ball, there are a few things that are currently true of the property market.

There is an undersupply of residential housing to the tune of around 106,300 dwellings across the five years to 2027. (Source: Housing Australia). There’s been a boost in immigration up 103% from last year to 681,000 people, according to the Australian Bureau of Statistics.

While the undersupply is not just due to immigration numbers, the surge is certainly doing nothing to alleviate demand for housing. According to Andrew Schwartz, Group Managing Director and Co-Founder for Qualitas, the challenges of supply and demand in residential housing are unlikely to ease up anytime soon.

“It takes time to put new supply into the market and underlying supply is probably running at 20-30% of what is demanded by the market,” says Schwartz.

But that’s also what makes it such an attractive area to invest in – after all, less supply and high demand is only price accretive.

Schwartz is starting to see a pickup in construction and thinks we are seeing the start of the next cycle. In this episode of Expert Insights, he shares why Qualitas favour residential property, the trends he is seeing and his advice to those investing in this space.

Looking for regular income and diversification?

The Qualitas Real Estate Income Fund (ASX: QRI) aims to deliver investors a regular stream of income with the added benefit of

The original article can be found here