The shortage of new home supply is considered a major challenge currently facing the market. Particularly in major cities like Sydney and Melbourne, there is a severe shortage of housing, leading to increased pressure on rising house prices.

According to data from the Australian Property Research Institute, the current annual construction of houses in Australia is approximately 180,000 units, far below the demand. Although construction activity has increased in recent years, the issue of supply shortage persists. This problem may continue until the government and developers can increase efforts in new home construction.

Secondly, high-interest rates and affordability constraints also impact market development. Since the Reserve Bank of Australia began raising interest rates in 2022, the cost of borrowing has increased, resulting in a decrease in the purchasing power of homebuyers. This has limited the demand of a portion of buyers, thereby exerting a certain restraining effect on house price growth.

In addition, the Australian government has implemented a series of measures to ensure the debt capacity and stability of borrowers, further restricting the loan amounts for homebuyers. These factors may exert some pressure on the market in the short term.

However, in the long term, the shortage of new housing may be the foundation supporting the next round of real estate prosperity in Australia. According to forecasts from Australian economic research institutions, population growth and changes in family structures will continue to drive demand for housing.

Although policies such as a slowdown in immigration numbers and tightening visa requirements may have some impact on demand, overall housing demand remains relatively strong. If the Reserve Bank of Australia lowers interest rates as expected, this new wave of prosperity may begin in the coming years.

The Australian government is also taking a series of measures to promote the development of the real estate market. For example, the government encourages developers to increase new home construction and provides corresponding incentives and support. Additionally, the government has introduced a series of homebuyer subsidies and loan assistance programs to enhance the purchasing power of homebuyers. These policies may alleviate the issue of supply shortage in the market to some extent.