A shortage in supply remains the biggest challenge faced by the market, underpinning price growth despite falling interest rates. New housing commencements show promise, with more than 49,000 units starting construction this year compared to 23,923 in the same period last year. Political parties have released housing policies that could impact the market, and the forecast is for average price growth of approximately 5 per cent in 2025.
Areas outside cities experienced even higher growth rates, while some regions are below the cost of building due to private landlords selling rent-capped properties
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