EP13 | What Is Driving Property Value Way Up!

The housing crisis in Australia is driven by supply and demand dynamics and the capacity to pay. Limited supply and high demand result in bidding wars and increased prices, while oversupply lowers prices. Factors such as affordability and economic confidence also influence the market. Coastal areas with restricted supply, like Byron Bay, have seen significant price increases due to affluent buyers from Sydney. However, with the return to office work and reduced liquidity, demand for coastal properties has decreased, and capital cities offer better buying opportunities. Understanding local supply and demand trends is crucial for predicting market performance. Overall, capital cities are expected to perform well in the next five years, while some regional and coastal areas may experience a slowdown.