What would you rather have right now?
An approved 150 unit inner city development site?
Or an approved 150 lot greenfield land subdivision anywhere within the urban footprint?
The answer says much about future challenges for housing development in Australia.
The rapid deceleration of the apartment market in Australia should come as no surprise.
The speculative frenzy which saw investors commit to off the plan purchases in such volumes drove an unprecedented wave of apartment development in Australia’s capital cities.
More than 80% of most of these projects were sold to investors, not owner occupiers.
Many of those domestic investors – driven by FOMO – were leveraged often at 90% or more of the purchase price.
Plus there were foreign buyers lining up and in no short supply.
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