More and more Australians are trading backyards for balconies.
They’re happy to live in apartments trading space for place - they want to live where the action is.
In fact the wave of apartment construction has changed the shape of our cities.
Not only in the CBD and near CBD suburbs, but new apartment blocks have spread to the middle and even outer suburbs.
Some say Sydney and Melbourne have Manhattanised.
Have we been building too many apartments?
- Also read:This week’s Australian Property Market Update – Latest Data, State by State November 28th, 2023
- Also read:The Boom and Bust of our Property Cycles: A Journey Through the Investor’s Mind
- Also read:Latest property price forecasts for 2023 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:The 10 Safest Cities to Live in Australia
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – November 2023
Are we building the wrong type of dwelling?
Is the oversupply causing a crash like many predicted?
And what’s ahead for our apartment markets – that’s what I discuss today with Dr Andrew Wilson in this week's Property Insiders video chat.
Watch as we discuss:
- The unprecedented apartment boom of the past 5 years in most capitals which has now clearly ended. This has implications for undersupply in coming years.
- Although record levels of apartments have been built in recent years, the unit market continues to outperform houses.
- Doomsayer predictions of oversupply and sharply falling prices have unsurprisingly proven to be false - in particular Brisbane where apartment prices and rents are rising and vacancy rates continue to fall.
- The sharp decline in unit construction has significant consequences for the economy which has benefitted from the recent boom that has offset the end of the mining boom and the depletion of the manufacturing sector.
- Demand for units is set to accelerate from a more diverse buyer profile as apartment living emerges as a preferred lifestyle for many.
- The peak of the supply cycle has now been reached in Melbourne and Sydney and predictably sales are relatively scarce exacerbated by misguided lending policies to investors, restrictions on Chinese buyers and general fragile sentiment.
- Tighter planning restrictions for apartments, particularly in suburban areas will exacerbate the emerging undersupply.
- NIMBYS and NOTES
- The missing middle
- Latest approvals data shows some early signs of a revival in unit buildings.