High-rise approvals dominating unit market
Developers are building up as high-rise approvals surge.
New analysis from CoreLogic shows the number of approvals for high-rise apartment buildings has grown significantly over recent years. CoreLogic researcher Cameron Kusher pointed to data from the Australian Bureau of Statistics (ABS) showing a strong month for multi-unit approvals in July. July saw the second-highest monthly number of unit approvals on record, and Kusher said a growing number of these were for high-rise units.
“Over the 12 months to July 2016, 62.8% of all unit approvals nationally were for high-rise units. If we look back even five years ago, just 50.7% of approvals were for high rise and a decade ago only 35.6% of approvals were for high-rise units,” Kusher said.
Kusher suggested that the number of high-rise approvals could continue to grow as developers find more cost-effective ways to bring supply to the market.
“As high-rise approvals have become the dominant type of unit approval, there have been far fewer semi-detached approvals. This has probably been in response to the cost of development sites and construction costs which have encouraged developers to build as many units on a site as possible. This will usually mean building up and having approvals for high-rise units,” he said.