The nation’s leading property developers are having trouble selling off-the-plan apartments amid falling property prices, soaring mortgage rates and rising construction costs:
Meriton managing director Harry Triguboff told The Australian rents were rising on a weekly basis, but it was difficult to sell off-the-plan units…
“There’s financial stress on off-the-plan developments, and construction prices have gone up 40 per cent” [Andrew Antonas, managing director of Sydney’s Matrix Property said]…
“We are tracking to do 60 per cent of what we did in 2021″, [Brad Caldwell-Eyles, CEO of 1st City Projects in Sydney’s east said]…
Meanwhile, apartment and land developer Central Equity warned that the collapse in off-the-plan sales will lead to worsening housing shortages:
The developer warned that buyers would be sidelined by the recent interest rate increases by the RBA, which would ultimately feed into the shortages driving the housing crisis.
“There has been an increase each month up until and including October with mortgage rates almost doubling to approximately 5 per cent per annum”…
“Industry sources are now predicting a future shortage of apartments as a result of the reduction of starts,” the Central Equity directors said…
“Stringent developer bank financing requirements continue to act as a restriction of supply. Housing shortages will be exaggerated with the growth of migration during 2023 and 2024,” the company said.
This is a disaster in the making. Rental vacancy rates are already at record lows with rents soaring at double-digit rates:
Meanwhile, the federal budget forecast that nearly one million net overseas migrants will arrive over the next four years:
Yet, these net overseas migration forecasts look understated given record numbers of students are already arriving in Australia:
Where will the hundreds of thousands of migrants live when there is already a chronic shortage of housing for the existing population? In tents? On the streets?
The Albanese Government’s ‘Big Australia’ mass immigration policy is a disaster in the making.
