Australia’s dwelling construction boom is likely to continue in the next financial year, according to a new report. New housing starts are expected to remain 30,000 to 40,000 above long-term averages in 2015-16, according to the Residential Development Council.

The Housing Industry Association says a record 205,500 homes will be built this financial year, compared to the long-term average of 153,000. The RDC report delivered a similar message, claiming that conditions are in place for a “continued run of unprecedented new housing supply”. The problem for the industry is that too much of the new building is high-rise units in inner-city locations that already have, or are likely have, serious oversupplies.