Year in review: Supply still lagging behind high demand for residential property

Smaller numbers of houses available, inflation and strong demand have contributed to a 12.4 per cent increase in residential property prices this year

Competition in the market is fierce and supply has never been tighter. Picture: Getty Images/iStockphoto

As we approach the new year, the spotlight on the residential property market remains undimmed. A significant lack of supply, coupled with a big increase in household savings, has seen property prices skyrocket over the past year.

In June, published our Property Price Report for Q2 2021. In it, we reported “red-hot” asking price inflation of 13 per cent. Asking price inflation is the most reliable lead indicator for actual property prices, and predictably, ...