Building approvals rose 7 per cent in August but remained 23 per cent below the long-run average. UDIA National forecasts completions 30 per cent below average within 18 months, and 44 per cent lower for apartments. Max Shifman says the contraction is eroding supply while development-ready land remains scarce.
As I told Broker News: “UDIA National has been warning of a major contraction in new housing construction and productivity for some time, and that prediction is coming true just at the time when we need to be increasing new housing supply and re-stocking our pipeline,”
I also said: “The ever-worsening reduction in new housing supply is leading to skyrocketing house prices and rentals, and we predict this becoming much worse over the next 18 months,”
And I added: “While strong demand may be returning to the market, there has been no commensurate improvement in development-ready land supply.”
Broker News, 4 October 2023 — Read the full article