An undersupply in the Australian property market will force residential property prices up by 30% in the country according to Frank Gelber, chief economist at BIS Shrapnel.
Quoted in the Sydney Morning Herald, Gelber said “we haven't got a bubble in our residential market. We're undersupplied, not oversupplied … [House] prices will go up another 30 per cent over the next three years.”
“We’re not over-geared, we’re not overvalued and we’re not oversupplied … I can't remember in the last 30 years a time when I have been more comfortable and optimistic about investment in the market.''
''In our long-term forecast report … we've got cash rates going up another [two percentage points] over the next three years and housing interest rates above 9% and that may turn out to be moderate.”