Metro Strata Report 2019
September 22, 2019
With the state of residential strata development currently a hot topic nationally, it is important to gain an overall understanding of each Capital City Metro market’s development pipeline. The PRDnationwide Strata Development Pipeline Capital City Metro Areas September 2019 aims to provide a high-level view of total, proceeding, and deferred/abandoned strata developments, both in terms of number of projects and number of units/apartments planned for the market, between 2018-2020.
Key findings include the following
- Total development pipeline of over 360,000 apartments and units in Metro markets nationally between 2018-2020
- The percentage of strata projects proceeding Nationally from 2018-2019 and 2019-2020 is not declining, perhaps against market expectations. This is the case in several cities, including Melbourne and Brisbane.
- 43.5% of proceeding apartments and units are in Sydney Metro
- Melbourne Metro is due to see nearly 100,000 apartments and units proceeding construction between 2018-2020
- Of the 3 major capital cities, only Brisbane Metro sees its proceeding pipeline increase annually in all consecutive years, with a phenomenal increase of 327.1% in total apartment and unit stock between 2018-2020. This is in anticipation of increased housing demand due to major infrastructure and commercial projects such as the Queens Wharf, Brisbane Cross-River Rail, and Brisbane Live Centre.
- ACT and Hobart see the smallest percentage of projects and units/apartments deferred/ abandoned from 2018-2020, suggesting developers are having strong success in these markets
- Brisbane’s number of units and apartments deferred/abandoned has doubled, suggesting developers are playing a safer strategy after the recent glut. Developers are choosing to develop smaller scale/boutique projects.
This report will provide developers and buyers with key information to make informed decisions relating to pursuing current and future development opportunities within these markets.
The data for all projects presented in this report was obtained through the Cordell Connect database. Projects were selected based on a ‘Metro’ classification for each state or territory, as classified by Cordell Connect, except for the Australian Capital Territory (ACT). Because of the nature of the ACT, Cordell Connect assigns no ‘Metro’ status to projects. For this reason, the entire ACT development pipeline was considered.
Read the full report.
This article was contributed by Dr Diaswati (Asti) Mardiasmo, Chief Economist – PRDnationwide & Colliers International