Sydney will be the only capital city in Australia by June 2017 to still have a housing shortage according to BIS Shrapnel’s 2016 Building Industry Prospects report released on Thursday.
After a record breaking building period across most Australia cities we will have an extra 24,039 homes by June 2017 which is above the level which is needed and there will be an oversupply for the first time in over a decade.
The report shows that Victoria leads the way with stats showing oversupplying by 21,881 dwelling by mid-2017.
Robert Mellor Managing Director of BIS Shrapnel said “We are moving into a period where by June 2017, every capital city will have some oversupply other than Sydney,”
The housing storages in the NSW continues but expects to see a slight improvement by mid-2017 from 53,386 homes in 2016 to 41,031 by 2017. The apartment market has seen the most of the concentration of building across the major Australian cities.
The MD of BIS Shrapnel also went onto say “Sydney’s undersupply is still so extensive that the city faces little chance of overcoming it by 2020 unless construction holds at current record levels “
With what is going on in Sydney, Brisbane & Melbourne are nearly in the opposite situation where the oversupply of highrises could see investors avoid the markets.
Associate Director of BIS Shrapnel Kim Hawtrey said “The combination of falling migration, the new expected supply and a tightening regulatory environment is the makings of a “toxic cocktail” that would hit Melbourne and Brisbane”
“Vacancy rates are heading back towards 3 per cent, price increases around the country are pretty subdued and unlikely to be dramatic going forward,”
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