Australia Residential Marketview Q3 2017
Over the past five years, Australia’s major capitals have seen almost 400,000 apartment approvals, with almost 100,000 in FY16 alone. Most markets recorded their highpoints in FY15 or FY16, although in Sydney the approval cycle has lasted longer.
Just over 30% of approvals in this time have been in inner city locations, within approximately a 5-kilometre radius of the GPO. This has been most evident in Brisbane (48.4%), Adelaide (47.4%) and Melbourne (35.2%). In Brisbane, shares of 55% were recorded in FY14 and FY15. Sydney has been the exception, where the highest share achieved was 23.4% in FY13 with the five-year average at 17.9%.
In the past year, however, inner city approvals have accounted for 26.3% of total metropolitan approvals (its lowest level this decade) and fallen in all markets except Perth. With the next two years likely to be the peak in completions in the current development cycle, the inner city share of activity in most markets is likely to remain constrained for some time