Further Increase in Housing Price Anticipated 

With the further aggravation of Australia’s property crisis, Director of Metropole Property Strategists,Michael Yardney has proposed a highly speculative approach—further increasing property prices. Verney suggests that the construction of new properties would only be financially viable with a 15–20% surge in property values. 

“It’s about ensuring projects are viable, not just profit,” Yardney said during an interview with 9news.com.au. “If stagnancy or a decline persists, developers will default on construction, intensifying the deficiency.” 

This comes at a time when the property market is facing rigidity concerning affordability. Homebuyers are pessimistic about penetrating the market because, according to the Australian Bureau of Statistics (ABS), the average cost of an Australian home has skyrocketed to $976,800. 

                                  Australia's median property prices from 2000 to 2025

Attainability for Homebuyers 

  House median values have climbed by 412%, inflating the average house by around $459,900. This rise in property value may benefit existing homeowners but presents hurdles to first-time owners. 

Many Australians are currently unable to escape their reliance on the government or the rental economy. Such an arrangement would, too, further deteriorate the condition of prospective buyers should further price increases take place.

Yet, as Yardney argues, without this increase, construction would halt, reducing the supply of housing and eventually driving up prices.  

Appeals Towards Government Action  

Brad Duggan, the CEO of Metricon Homes, has proposed "wartime response" plans that aim to counter the crisis with federal government attention. He called on the policymakers to cut red tape and speed up the approvals for the construction of new houses.  

“This is a national emergency,” Duggan called, “and the rest of us are stuck waiting to take action.” Developers can build new homes; it's the planning and regulatory workflows that are the problem.  

Current and Future Housing Issues  

Aiming for a target of 300,000 homes over the next five years, current efforts  Should no quick action be taken, that figure will keep increasing and will drive homeownership farther from reality.  

On the other hand, Michael Yardney, director of Metropole Property Strategists might be difficult to envision, but in reality, his claim of providing stability in the long-term prospects is valid. With higher prices, he states, more developers would be incentivized to start construction, which would gradually help overcome the housing deficit.  

Yardney acknowledged, "I understand, but that's what makes it challenging to accept." But a sustainable housing market, in the future, supported by short-term pain is worth it.”  

That is where the debate about attempting to solve Australia’s housing crisis persists. Yes, even though exacerbating inflation problems may motivate developers, homebuyers are still at risk. The calls for government intervention will ultimately decide if the nation can establish equilibrium in the housing market.  

The current property market may seem daunting, but for proactive buyers, it presents unique opportunities. OM Financials is here to assist you in smoothly navigating the intricacies of price fluctuations. Our skilled mortgage professionals will make sure to set up negotiations for stipulations that will best suit your financial goals.

We invite you to move forward with clarity by calling 0478 876 967 or book a consultation to explore your options today.