What’s happening in the market?
Nationally, sales results improved in the final quarter of 2020. Clearance of available off the plan stock increased to 15% as a national average, up from 11% in the previous quarter. Most regions sustained activity levels or experienced an uplift in sales in the final quarter of 2020.
In Sydney the new apartment market cleared an average of 9% of available inventory compared to 11% in the previous quarter(which is still an increase on the results in the first half of 2020– 7% Q1 and 4% in Q2). Coming out of a slow market, the future pipeline is beginning to return with new apartment approvals reaching the highest number since 2017 (over 5,000 new apartment sand over 20 developments).
In Melbourne, the clearance rate of new inventory improved to 11% in Q4 2020, having bottomed out at 6% the previous quarter. Throughout 2020, launch volume has reduced to 2,800 new apartment launches (40% of the launch volume in 2019).
Inner Brisbane’s apartment market continued to outperform the national average, clearing 16% of available stock compared to 15% in the previous quarter. Combined with improved sales demand, in 2020 project launches increased by 20%, compared to 2019.
The Gold Coast experienced the biggest sales increase in the quarter, with 26% of available stock sold compared to 15% in the previous quarter. The Gold Coast and wider Queensland apartment market have seen activity increase throughout COVID, with the Gold Coast market recording its strongest quarterly result in over four years, 97% above Q3 results.
The Perth market finished 2020 with momentum and saw the highest quarter of sales since Q1 2016. Stock clearance increasing to 14% in Q4 2020, up from 11% in Q3 2020.