- While both Sydney and Melbourne house prices have fallen since October 2010, supply-side factors have meant the trajectory of those falls has been vastly different.
- Sydney’s bona fide housing shortage is supporting prices. Melbourne, on the other hand, has a supply glut.
- Recent reforms to land use and construction policy in both cities threaten investor hopes for medium-term capital gains.
Australian housing is currently living a tale of two cities. Our two largest cities have accounted for a great part of the aggregate falls since October 2010, but while they have both fallen, they have fallen quite differently: one more feather; the other more lead balloon. Sydney, representing 1,698,814 households or 31% of the national total, has been the most resilient of the capital cities; Melbourne, representing 1,533,138 households or 28% of total, has meanwhile been the poorest performer over this period…
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