Vacancies trending down
Interesting statistics from the Real Estate Institute of Victoria (REIV), which suggest that record population growth in Melbourne is absorbing the new supply of apartments.
In fact, the 6-month average trend for vacancy rates is sitting at its lowest level across the chart which spans half a decade.
This mirror a similar pattern to Sydney, where population growth has also accelerated.
Still, there are attached dwellings aplenty under construction in Victoria and New South Wales.
And these are overwhelmingly located in Melbourne and Sydney.
It could be an interesting year ahead for the apartment market.
With mainland Chinese investors reportedly now struggling to settle on apartments, it is a near certainty that apartment commencements will fall sharply, particularly in the three most populous capital cities.
In Brisbane high-rise approvals have already dropped from record highs to near zero as developers back away from the looming glut of supply.
While the slowdown in construction may be no bad thing for the unit market at face value, it’s worth remembering that the construction industry employs well over 1 million Australians, so the impact on employment will likely be material.
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