The Australian Financial Review
Australia will deliver 30,000 fewer apartments this year than previously expected as developers hold off on projects they couldn’t sell profitably and weak presales and weather delay construction, CBRE says in a new report.
The number of new apartment completions will drop from 64,031 last calendar year to 52,505 – well below the 81,880 homes the commercial real estate agency forecast two years ago.
“It’s because feasibilities didn’t stack up a year or two ago and projects are running slightly behind schedule,” CBRE head of Pacific research Sameer Chopra told The Australian Financial Review.
Including the expected decline next year, new completions over the five years to 2030 were likely to be down 50,000 from 2023 forecast, reflecting in large part the disparity between build cost and sale price, Chopra said.
“Even now, feasibilities are still about 20 per cent under water,” he said.
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