In the News
Unit buyers think big again
NEAR-RECORD sales are set to double Melbourne's average annual supply of apartments within two to three years, according to research by property company Oliver Hume.
More than 7500 new apartments will settle in three years, with 4829 apartments in 2012 and 2500 expected in 2013, according to an apartment construction index released by the company.
The apartments will add more than 35 per cent to the existing supply of about 30,000 apartments.
The record year for apartment completions was 2006, with 5000 on the market. The average supply since 2000 has been 2153 a year.
Oliver Hume national research manager Andrew Perkins said after the 2006 peak, fewer than 200 apartments were built in 2007 and 2008 as the market adjusted to an over-supply and the global financial crisis hit buyers and investors.
"We are still in the catch-up phase, with 2012 signalling the first real jump in supply," Mr Perkins said.
Victorian government forecasts suggest annual apartment demand in the City of Melbourne could be about 2500 to 2014.
Mr Perkins said there were more than 60 apartment buildings now being marketed in the wider City of Melbourne - 27 released this year, or 8100 apartments if all were built.
Across metropolitan Melbourne, more than 290 apartment projects are being marketed. Oliver Hume general manager of apartments, Jamie Kay, said pent-up demand was driving supply.
"Local investors are keen for new stock, offshore buyers see Australia as a safe real estate haven, and population growth is underpinning new construction," he said.
Mr Kay said high-rise and ultrahigh-rise towers in the CBD, Docklands and Southbank were aimed at the investor.
"CBD fringe apartments are replacing inner-city cottages as the residence of choice for the under 30s and young couples due to affordability and location issues,'' he said.
Author: Philip Hopkins, The Age
Posted: 26, May 2011
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