Rising interest rates were tipped to push buyers to apartments as borrowing power fell, with Sydney's median unit price $830,534, 41 per cent below the median house price, Melbourne 37 per cent lower and Brisbane's gap at $392,365. UDIA president Maxwell Shifman warned rising costs would delay projects.
As I told the Australian Financial Review: “Whenever you see substantial growth in established housing, you do start to have people look more at the apartment market,”
I also said: “The irony is that we may end up with fewer viable projects and those that do go ahead will have to be more expensive on average,”
And I added: “The rising costs of materials and labour will force developers to charge more because there's only so much increase in costs that they can absorb.”
Australian Financial Review, 5 May 2022 — Read the full article