Housing supply is blocked by feasibility, not planning: build-to-sell apartment launches are at decade lows and 34,000 approved homes sit stalled. Intrapac's Max Shifman, in a widely read reply, wrote that each square metre of new apartment costs three times a townhouse, so only premium boutique projects stack up.
As I told the Australian Financial Review: “Despite this strong desire (to build more mid-level and high-rise apartments in activity centres of established suburbs) we won't be building these sorts of apartments any time soon,”
I also said: “Why not? Because this sort of development is not feasible to build and sell, especially at scale, and won't be for a time yet.”
And I added: “The only apartments that generate a suitable return on investment are premium boutique apartments targeted at wealthy downsizers,”
Australian Financial Review, 30 October 2024 — Read the full article