The country’s high-rise apartment supply has already peaked and completions this year will drop by almost one-third to 16,000, JLL said in its latest Residential Apartment Markets reports.
“This latest data confirms that tightening credit availability and falling house prices are battering confidence in the residential sector and with the final recommendations of the banking royal commission released today the scales are tipping more towards added downside risk to the residential downturn,” BIS Oxford Economics managing director Robert Mellor said on Monday after the figures.
The consultancy expects increasing settlements to coincide with tightening credit constraints and put further downward pressure on apartment prices in the Victorian capital this year.
Approvals of townhouses and semi-detached dwellings stood at 33,329 in the year to December, down 10.2 per cent on a year earlier and the weakest number since the year to February 2017, but still relatively stronger than high-rise apartments.
In NSW, approvals of apartments, townhouses and semi-detached dwellings slipped to 35,226 in the December year, the lowest since the year to April 2015, when it was 34,462.
Queensland apartments suffered a further blow. The monthly total 848 apartments was the weakest since the 653 chalked up in April 2014 and the yearly total of 15,588 was the lowest since the November 2013 total of 15,167.
Victoria suffered a less-pronounced downturn, with the yearly total 28,369 only the lowest since September 2017, when it was 27,967.
In SA, where the monthly total of apartment approvals trod water at 181, the yearly total slipped to 3943, but held above its January 2018 total of 3932.
In WA, where the housing market has yet to show a sustained upturn, not even a jump in the monthly total of apartment approvals to 160 from 94 in November could prevent a decline in the yearly total. For the 12 months to December, approvals of units, semi-detached and townhouse dwellings in WA slipped to 3402, the weakest number since May 2012, when it was 3118.
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