Concerns have been raised by BIS Shrapnel's MD around the generalisation that Australia has a severe undersupply of residential property. While the affordability issues we see support that notion, the concern is the volume of new property that has come out of the current boom means we have gone beyond any undersupply in some states and cities, particularly with the slow down in the resources sector impacting some regions.

I also like their analogy below of the allure of the property boom period being likened to a Sunday afternoon and how it is hard to think about Monday coming.

By the time the boom feeling has become the norm and everyone is getting into the party, smart investors are thinking about what Monday morning will bring and preparing for that before the lazy Sunday afternoon is over.