Brisbane apartment dwelling starts to drop precipitously
Pete WargentDecember 17, 2020
It's been a remarkable few years for dwelling construction in Queensland, especially for high-rise apartments, but the boom times for development are drawing to a close.
The amplitude of this cycle has been on a par with Queensland's dwelling construction boom of 1994.
Back then about a quarter of dwellings built were multi-units, but the ratio has twice as great this time around, accounting for more than half of the total by 2015.
With lenders now tightening deposit requirements for apartment buyers across a swathe of inner Brisbane postcodes, as well as developer insolvencies peppering the newswires, there's no doubt that dwellings starts for apartments will continue to drop precipitously from the latest reported numbers.
On the positive side, the most timely population estimates suggest that both interstate and net overseas migration are swinging sharply in Queensland's favour, so this should help to mop up the excesses over time.
Tenants are centralising and moving in too, slowly but surely.
Still, it's clearly going to be a renter's market in 2018, and, if my inbox is any kind of worthy indicator, there's going to be some material discounting on unsold new apartment stock.
Investors with the means should keep a watchful eye out for bargains next year.
Pete Wargent
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.