Not enough apartments in Sydney!

In 2016, Melbourne and Brisbane CBDs saw new records set for the number of apartments under construction.

Melbourne CBD has 18,000 apartments currently under construction, which is more than 10 times the average annual rate.

Sydney CBD also saw a large number of projects start construction, however numbers are still lower than both Melbourne and Brisbane.
These construction increases in Sydney have done little to alleviate the strong demand from those wanting to buy in the Harbour City.

Sydney has developed 30% less housing than Melbourne over the past decade and a lack of supply continues to be the main cause of the low levels of affordability we’re seeing.

Changes to lending

the banks continue to slow the rate of growth in lending largely on the back of recommendations put forward by the Australian Prudential Regulatory Authority.

While this was necessary for the financial stability of the economy, it wasn’t ideal for investors with many of the restrictions hitting this group of buyers.

Lower rates of lending to investors should make it easier for owner occupiers, but so far the slow down in investor lending growth has minimal impact on affordability.