RESEARCH
CONSTRUCTION levels have stalled across Melbourne and Sydney as costs surge and property prices in both cities stagnate.
According to new analysis from KPMG Australia, as residential construction costs grew by 30% over the last two years...
This volume of dwellings is only growing from the 13,800 recorded at the same time in 2022, with 2019 the last time...
While figures are less severe in Victoria, with 10,500 dwellings approved without construction commencing by the end ...
In Victoria, the last time figures were this high was in December of 2017, when there were 11,400 dwellings not yet commenced...
The majority of these not yet commenced dwellings, in both NSW and Victoria, are apartments or townhouses, at around three-quarters.
“Property developers are shelving projects because of soaring costs and lacklustre property prices. Some are even going bust,”
“Both Victoria and New South Wales have increased demand for new dwelling approvals, but dwellings are far from materialising...
Rawnsley noted that neither Queensland nor Western Australia have seen the same flatlining in residential construction...
This is partially due to Queensland and WA’s smaller proportion of new medium and high-density dwellings, which are often more...
“With the increases in construction prices starting to moderate and property prices in New South Wales and...
Costs do look to be easing, with CoreLogic’s Cordell Construction Cost Index showing diminished growth, after two years of...
“These not-yet-commenced dwellings represent a pool of approved homes, which can be quickly delivered when market conditions improve.”