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The national apartment market is showing signs of moderating this year amid an annualised 40% drop in sales and a 26% drop in launches during the second quarter, according to the latest data from Urbis.
The April to June period saw 38 projects launching nationally, bringing 5,000 new apartments to the market, contributing to a total of 10,600 new products.
Meanwhile, sales have been decreasing at a steady rate of approximately 10% per quarter in 2018, treading at 1,100 in the June quarter.
However, the Gold Coast and Melbourne markets managed to buck the national trend, as both areas recorded steady sales into the second quarter. The average sales price in these cities has also increased for new apartments, showing a positive upward curve.
“The overall residential market is softening, with a slowing in auction clearance rates for established stock. The market for new apartments is matching this trend in most cities with a slowdown in sales rates,” said Urbis national director Clinton Ostwald.
“However, with continued strong population growth and the likelihood of a steep slowdown in new supply over the next 18 to 24 months, we should start to see sale numbers and price growth start to tick up,” he added.
Two-bedroom, two-bathroom apartments were the most popular, accounting for 50% of total sales – this marks a significant rise from the same period a year before, when such products held just 39% of sales.
“With continued pressure on foreign investors sourcing finance, developers are starting to move away from investor stock, and are tapping into the local market, with first home buyers emerging from the woodwork.”
