Investors are showing renewed interest in the high-rise dwelling sector they largely deserted. But significant risks to the crucial sector still remain.
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New apartment completions are forecast to fall to a nine-year low next year as developers delay launching major projects because of low overseas migration, few international students and a lack of investors.
National property consultancy Charter Keck Cramer expects just over 43,000 apartments to be finished this year, a 10 per cent rise on 2020, as projects that were under way or launched before the COVID-19 pandemic are completed.
Apartment construction will slow dramatically in 2022 as fewer projects are launched.
James Alcock
The number of completed apartments in 2022 is forecast to fall 44 per cent to just over 24,000 and then to 15,400 in 2023 – based on the current pipeline of projects either under construction or being pre-sold.
MacroBusiness
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at 12:08 am on January 19, 2021 | 24 comments
Domain’s December quarter Rental Report has been released, which reveals that apartment (unit) rents have fallen off a cliff across Sydney and Melbourne, driven by collapsing demand from international students and migrants alongside ballooning supply:
In Sydney, apartment rents have plummeted to 2013 levels whereas they have fallen to 2016 levels in Melbourne:
Sydney
Unit rents made the steepest quarterly and annual fall since Domain rental records began in 2004. Unit rents tumbled $25 over the December quarter to $470 a week and since pre-pandemic March $50 has been shaved from asking rents. The cost of renting a unit has now returned to 2013 levels. Unit rents have been hardest hit in the city and east and inner west with rents at an eight-year low, and the lower north shore is the cheapest in nine years.