New housing demand will pick up in the next 18 to 24 months as rising wages and falling prices combine to improve the affordability problem keeping buyers out of the market, says Stockland chief executive Tarun Gupta.
Mortgage payments equal to the “mid-40” per cent of disposable household income for Sydney – over the typical equilibrium level of 35 per cent – and at 33 to 35 per cent in Melbourne, in contrast to the “under 30″ per cent figure that represented equilibrium, would come down, Mr Gupta said on Monday.
Michael Bleby covers commercial and residential property, with a focus on housing and finance, construction, design & architecture. He also dabbles in the business of sport. Michael is based in Melbourne. Connect with Michael on Twitter. Email Michael at mbleby@afr.com
