Apartment and medium-density delivery is forecast 40 per cent below 2010 levels, with approvals at financial crisis lows and a projected 106,300-dwelling shortage over five years to 2027. UDIA president Max Shifman says planning restrictions mean longer approvals, less viable projects, and entry-level apartments that no longer stack up.
As I told The Australian: “The overriding factor has been the lack of approvals because of just how convoluted the planning process has become, virtually universally, across the country,”
I also said: “It's taking longer to get things approved, what is getting approved is less than less viable, we're still struggling with development being opposed greatly by local areas and existing residents … and what we're seeing now is the impact of all of that, which is decade-low approval figures in apartments.”
And I added: “It's really hard to make the numbers on entry level apartments work and so you've seen the market towards the more premium and the more boutique owner occupier; dare I say, mostly downsizer product,”
I went on to say: “You're selling to a cohort that has the capacity to buy that sort of housing. It's not really addressing the entry level anymore, because it really isn't feasible.”
The Australian, 13 April 2023 — Read the full article