The latest data from Residex shows that annual property sales have climbed in virtually all market areas, and for all property types. For example, in the 12 months ending January 2010, house sales in Perth jumped by 37 per cent while unit sales soared 62 per cent, albeit off a low base.

Sydney house sales were up 23 per cent to 45,875, while Melbourne recorded the highest number of total house sales at 56,426, for a 31 per cent increase.

Record overseas immigration under the Rudd government, coupled with the local baby boom, are factors that are driving this increased demand across the country. Nationwide, 354,005 houses were sold, and 147,301 units, for a combined total of over half a million homes!

According to Residex, demand for new dwelling units is running at 170,000 units, being 110,000 for new migrants, and 60,000 for new households as young people leave home. The problem for prospective homeowners, and the opportunity for investors, is that supply is only running at 140,000 new dwellings, which means that the existing shortage of over 150,000 homes is increasing by 30,000 per annum!

The impact of this on property prices and rentals will see them spiralling upwards, and those who are already in the market, and investing in new stock, are in the pound seats.

One thing is clear; this situation is not going to change, and if anything, it will get (worse) for home seekers, and (even better) for property investors.
There are few things in investment that look like a sure bet. However, property in Australia appears to be just that, and those who can afford to get amongst it will be the big winners in the long run.

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Source: www.yourmortgage.com.au Sales of houses and units surge across the board 19/02/2010