In a recent report, our team provided an in-depth analysis of the apartment market in Inner and Middle Melbourne over the last decade, examining the impact of policy interventions, market trends, and future supply pipelines. It serves as a call to action for the development industry and government to collaborate and unlock much-needed housing supply.
The report, prepared for The Urban Development Institute of Australia (UDIA), reveals that between 2011 and 2021, Inner and Middle Melbourne saw significant apartment construction, with approximately 10,000 apartments delivered per year. This was largely driven by investment from both overseas and domestic buyers, however changes in policy settings and market conditions have since led to a decline in apartment supply.
One key finding from our research shows that the active pipeline of apartments going forward is around half the volume delivered during the peak of supply in 2015-2017. Specifically, the period from 2016-2021 saw an average of 12,265 apartments delivered per annum, while the forecast for 2022-2027 is significantly lower, with only 6,780 apartments expected to be produced per annum in the sample area.
