Analysts: Mass immigration to drive up Australian rents

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Several analysts have warned that the slowdown in residential construction amid ongoing strong immigration will force up rental costs from 2020:

Scott Keck, chairman of property consultants Charter Keck Cramer, said Australia’s steady influx of migrants would shore up demand for apartments…

The bigger problem for Australia, he said, was that supply would fail to meet demand over the next few years, causing rents and prices to rise as a result. “In Melbourne, current population growth requires about 50,000 new dwellings a year”… “So we’re very quickly finding ourselves going from concerns of oversupply to concerns of undersupply”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.