I really do not think under-supply is going to a problem.
For one, I think the reason that new home sales have fallen off the face of the planet causing developers like AV Jennings to make people redundant is that everyone who wanted a home could get one with a 100% loan from the bank. Property has been over-bought with large amount of debt.
Fools rushed in thinking that the value was not going to fall, they could sell anytime and they could afford massive repayments for 30 years. Many bought with easy credit way outside their means. Now people have redundancies and negative equity staring them in the face. They will end up owing the bank and end up with nothing. It is quite sad really.
Secondly with unemployment on the rise and predicted to get a lot worse especially in NSW and WA, populations will migrate for employment, whether it be back to their home town or country. I highly doubt that rents will increase as there will be plenty of properties both to rent and buy next year. The fire sale has not started yet wait for the post Xmas redundancies IMO, the smart have reduced their exposure already.
