Apartments Taking Longer

There may be growing demand for apartments as buyers seek affordability, but it is now taking longer to deliver projects than it was five years ago.

Research by Urbis into the apartment development market shows high construction costs and material and labour shortages have significantly pushed out the time it takes to complete development to about 75 months as of June 2024.

Urbis economics director Paul Riga says this is how long, on average, it is taking from development to completion. “Five years ago, it took only 45 months. It is taking an extra 2.5 years on average to deliver completed developments. No wonder we are seeing constrained supply,” Riga says.

The Urbis Apartment Essentials report for the second quarter of 2024 says there are more than 750 active apartment developments across the Gold Coast, Brisbane, Sydney, Melbourne, and Perth. The average price per square metre remains steady at $14,000 for recently launched projects.

The report also shows that there is an increase in sales of more affordable apartments in some capital cities. “We are seeing a tale of two markets,” Riga says. “In Sydney and Melbourne, the top-selling projects are more affordable. In Queensland, the Brisbane and Gold Coast markets are still targeting the luxury/premium market.”