Across the national apartment market, Urbis found that 9 per cent of available stock surveyed sold in Q2 2019, up from 7 per cent in the previous quarter. Apartment sales in Sydney, Melbourne and Brisbane, which saw 8, 12 and 13 per cent of available stock sell in the quarter respectively, contributed to the growth in sales. Though, the Gold Coast witnessed a slow down in sales, this was due to a greater proportion of premium product on the market.
Urbis Group Director, Clinton Ostwald, weighed in on the national apartment market performance, “Lower sales rates over the past 18 months are seeing a definite adjustment in the level of new stock entering the market.”
This quarter, only 2,896 new apartments launched nationally, compared to 5,419 apartments in the same period last year. In the sales boom experienced two years ago, 7,639 apartments were launched in the quarter.
Development approval figures have also followed the laws of supply and demand in line with slower sales. This quarter 5,191 apartments were approved, compared to 15,594 apartments approved one year ago and 24,874 apartments two years ago. “Though we are still witnessing a vast pipeline of potential new supply, we will not see these sites coming to the market until the demand is there, and preferably the planned infrastructure built to support the growing population,” Mr Ostwald said.