Offshore apartment developers to take 58% of Melbourne market by 2015: Chart of the week

Offshore developers will account for 39% of all new apartments built in and around the Melbourne CBD between 2013 and 2016, according to figures compiled by property consultants Charter Keck Cramer.

This will equate to around 4,700 apartments in total.

The red line in the chart below shows offshore developers' rising share of the Melbourne central city market, which will peak at 58% of apartments in 2015.

Click to enlarge

Source: Charter Keck Cramer

Local developers will provide 61% of new apartments built in the CBD, Docklands, South Bank and City Road between 2013 and 2016 well down from the 92% of all new apartments they delivered between 2000 and 2012.

A similar trend – though not as pronounced – will take place across the entire Melbourne metro region with offshore developers share of the market rising from just 3% in the period from 2000 to 2012 to 15% between 2013 and 2016 – around 5,500 apartments.

Offshore developers will provide 4% of short-term future supply in the City Fringe Region ( around 2-5 km from CBD), 2% in the inner region (5-10 km) and 7% in the middle region (10 -20 km). 

The elevated participation of offshore developers in the middle region relates to primarily Box Hill, says CKC.