HomeBuilder will worsen Australia’s property oversupply

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Some residential property developers have reported a sharp rise in sales since the federal government announced its six-month HomeBuilder scheme in June.

Cedar Woods’ chief financial officer Leon Hanrahan has warned that some developers could overbuild in response to the scheme, resulting in an oversupply of new housing.

Jeremy Sheppard of Select Residential Property says the risk of an oversupply is particularly high at housing estates in the outer suburbs of capital cities:

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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.