Will More Homes Mean Lower Prices? It’s Not That Simple

In this Australian Financial Review article, Michael Bleby explores whether Australia’s surge in new housing supply will help ease sky-high property prices or risk pushing them even higher. 

Bleby speaks to economists, property experts and policymakers about the complexities of Australia’s housing market. Oliver Hume’s Matt Bell points to rising dwelling starts as a positive sign for supply. InvestorKit’s Junge Ma highlights that most of the development is concentrated in Melbourne and Perth. Mondus Capital’s Lucinda Hartley notes that even in areas with significant new housing approvals, prices continue to rise in many cases. 

As LongView’s Evan Thornley explains in the article, much of a property’s value lies in the land, not the dwelling itself. Increasing density in sought-after locations often drives up land values, meaning prices for family homes are unlikely to fall even as more apartments come online. 

At LongView, we see this dynamic every day. It is why the Homes Investment Fund focuses on Robust Older Dwellings on Well-Located Land (RODWELLs), properties that offer resilient growth over the long term.