The top 25 areas set to see an abundance of new units

Over the next year, 94,471 new units are planned to be completed nationwide, an increase of units by 3.5 per cent. Looking over the next two years, 251,751 units are expected to be completed, an increase of 9.3 per cent.

In terms of capital city areas, the two most populated capital cities are expected to see the highest increase of unit supply over the next two years, with Melbourne in the lead at 78,689 and Sydney in second place with 76,977, while Brisbane is expected to see the greatest percentage increase at 18.4 per cent, followed by Adelaide at 12.5 per cent.

Looking into the capital cities, out of the top 25 regions for unit supply over the next two years, the inner Brisbane region is expected to see the most units over the next two years, but the north of Blacktown in NSW is expected to see the biggest percentage increase, rising by 52.8 per cent over the next year and 128.1 per cent over the next two years.

Analyisng the data, CoreLogic research analyst Cameron Kusher said while the past five years have shown a significant increase in unit supply, the property market has deteriorated with falling values and rental growth, and conditions in Melbourne and Sydney could deteriorate even further and Brisbane to a lesser extent.

“Considering that dwelling values have generally trended lower over the past twelve months, buyers who have purchased a unit ‘off the plan’ may find the unit value at the time of settlement is lower than what they may have expected at the time of signing the contract,” Mr Kusher said.

In some cases, the settlement value may be lower than the contract price, implying buyers may need to top up their deposit in order to meet their lenders loan to valuation requirements.”

The top 25 regions for new unit completions over the next two years according to CoreLogic are:

Tags:

• Latest

Share