The average price of a Sydney home could rise by $100,000 in the next two years, according to several investment groups.

The cause of which is due to a shortage of homes and a growth in population.

Kevin Young, president of the on of the groups, which has 90,000 members in Australia, says the last spike in Sydney property prices occurred between 2002 and 2004 when the median house price surged by over $150,000 to $524,000 because of under-supply.

“This spike in property prices was caused by an under-supply of houses relative to population growth which resulted in a major blowout in prices over this two year period,” Mr Young said in a statement.

“House prices in Sydney have been in recession for the last five years.

“In contrast, other capital cities have recorded major growth in their median house prices during this five year period, with the median house price in Perth, for example, jumping by around $200,000 during this five year period.”

Mr Young says it has become difficult for developers secure building approval in Sydney.

source: http://www.news.com.au/business/money/story/0,25479,25968619-14327,00.html?from=public_rss