Rents point north
The latest acceleration in population growth figures - summarised here - suggested that far from overbuilding, there is likely to be a shortage of some dwelling types in Sydney and Melbourne.
Of course, rents are driven by the supply and demand of rental properties on the market, and investor loans have been scaled back.
CoreLogic confirmed that rents are now surging in Sydney and Melbourne, with rents up by +4.8 per cent from a year ago in both cities.
The strongest rental price growth was seen in Hobart, at +8.5 per cent.
Some dwelling price growth has rippled out to the regional centres, especially those located reasonably close to the capitals, including Geelong in Victoria (+11.4 per cent).
I looked at a few of the reasons that Geelong was likely to experience a surge in house prices back in March.
