The supply side of housing (number of units per quarter; log annual difference; 3Q2002-4Q2004):
In the top chart, the top dotted line is the average from 2002-2008 (about 49.2k per quarter) while the bottom dotted line is the average since (about 24.4k per quarter) . In the bottom chart, the corresponding averages are 5.7% and 2.2%.
So, a big part of the reason why house price inflation increased over the past decade or so is due to the shortfall in supply.
- Data from various reports published by the National Property Information Centre
- Note that the above data series excludes service apartments to maintain consistency (2016 NAPIC data does not include service apartments)