SYDNEY—Snarled supply chains and labor shortages are adding fuel to some of the world’s hottest property markets, complicating efforts by central banks and regulators to cool them down.
In Australia, shortages of materials and supply disruptions have contributed to the average price of newly built homes recently rising at its fastest rate in 21 years, according to the Australian Bureau of Statistics. In the U.K., a lack of subcontractors including carpenters and electricians is driving rapid increases in wages. New Zealand’s government this month ordered its competition watchdog to examine the supply of building materials amid concerns about higher construction costs and housing affordability.
