Apartment building to drop by half
Apartment building to drop by half by 2020
The housing boom is over, with construction of apartments set to plunge by 50 per cent in the next four years, based on a new report from economic forecaster BIS Shrapnel.
The Building in Australia 2016-2031 study shows multi-residential buildings will fall from around 107,000 a year currently to just 53,800 by 2019-20.
Its Associate Director Dr. Kim Hawtrey blames a backlog of housing completions and declining population growth for the expected over-supply after building peaked at an “improbable” 220,100 new dwellings in 2015/16.
Western Australia will take a hit of -19 per cent in 2016/17, with Victoria at -17 per cent and Queensland at -12 per cent, though the pain will be felt most in the ACT, Northern Territory and Tasmania.
With the market predicted to stay flat for the foreseeable future, will it be unhappy times ahead for developers of ‘vertical villages’?