Australian Property News

Undersupply will drive price growth in NSW

Posted on Monday, December 21 2009 at 8:37 PM

Property prices are set to grow in New South Wales during 2010, according to Laing+Simmons.

General manager Leanne Pilkington admits there are some disincentives to investing in Sydney such as the already high prices and land tax, but she believes there's also high demand for rentals.

"It's very easy to find tenants in NSW and prices will continue to grow," she says. "Sydney is really the major city in the country."

Pilkington says the lack of supply is what's driving prices and she can't foresee that will change any time in the near future.

"There are plenty of buyers around and not enough supply," she says.

"There's no major development going on, so I can't see how the supply situation is going to change any time soon."