A real estate developer chief said house prices across Australia have improved thanks to an under supply of housing in the country.

John Mulcahy, chairman of Mirvac, said he keeps getting asked about foreign investors entering the property market and whether there’s a housing bubble, according to Business Insider.

“While we agree the level of activity in the sector has increased, and pricing has improved in certain geographies, we believe the primary driver of this is the fundamental undersupply of housing across the country,” he told the company’s annual general meeting.

Mulcahy says his company is seeing growing demand from offshore buyers who are after apartment projects in Australia’s biggest cities.

For the 2014 financial year alone, 11% of all property sold in Australia were bought by foreign buyers.

As for his evaluation on the feared housing bubble, Mulcahy said the country would need to see “much higher levels to suggest a bubble”.

“Investor activity is certainly buoyed by low interest rates, a view that property is a safe investment and a more cautious outlook towards general equities. But the key driver of higher pricing is driven primarily by a lack of supply, particularly in Sydney,” he said.

The real estate developer posted an operating profit of $437.8m this year.