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Recently released data from CoreLogic reveals the top 25 areas for new units in the pipeline across the country, data that will be of interest to PMs and BDMs.
The latest Property Pulse from CoreLogic analyses the influx of increased unit numbers over the next two years and what that means for the investment and rental landscape.
Over the next year, 94,471 new units are planned to be completed nationwide, an increase of 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 with 78,689 and Sydney in second place with 76,97. 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.
Analysing the data, CoreLogic research analyst Cameron Kusher said that 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 12 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 lender’s loan-to-valuation requirements.”
The top 25 regions for new unit completions over the next two years, according to CoreLogic, are:
|
Region |
Total units |
Potential new units next year |
Potential new units next two years |
Expected increase next year (as a percentage) |
Expected increase next two years (as a percentage) |
|
Brisbane Inner Qld |
32,804 |
2,996 |
9,732 |
9.1% |
29.7%
|
|
Melbourne City Vic |
99,263 |
3,167 |
8,040 |
3.2% |
8.1% |
|
Sydney Inner City NSW |
117,944 |
3,257 |
7,202 |
2.8% |
6.1%
|
|
Parramatta NSW |
36,912 |
2,525 |
5,996 |
6.8% |
16.2%
|
|
Whitehorse - West Vic |
19,347 |
839 |
4,659 |
4.3% |
24.1% |
|
Ryde - Hunters Hill NSW |
31,236 |
1,646 |
4,460 |
5.3% |
14.3% |
|
Strathfield - Burwood - Ashfield NSW |
40,932 |
1,837 |
4,116 |
4.5% |
10.1%
|
|
Blacktown - North NSW |
3,080 |
1,627 |
3,945 |
52.8% |
128.1%
|
|
Perth City WA |
40,100 |
1,906 |
3,807 |
4.8% |
9.5%
|
|
Yarra Vic |
29,983 |
1,155 |
3,598 |
3.9% |
12.0% |
|
Maribyrnong Vic |
17,402 |
1,282 |
3,532 |
7.4% |
20.3%
|
|
Dandenong Vic |
24,836 |
1,576 |
3,518 |
6.3% |
14.2%
|
|
Penrith NSW |
10,727 |
1,184 |
3,340 |
11.0% |
31.1%
|
|
Canterbury NSW |
24,674 |
1,969 |
3,339 |
8.0% |
13.5% |
|
Glen Eira Vic |
36,182 |
1,660 |
3,319 |
4.6% |
9.2% |
|
Auburn NSW |
22,486 |
1,109 |
3,271 |
4.9% |
14.5% |
|
Monash Vic |
23,557 |
903 |
3,216 |
3.8% |
13.7% |
|
Darebin - North Vic |
16,519 |
826 |
3,154 |
5.0% |
19.1% |
|
Essendon Vic |
16,726 |
1,278 |
3,018 |
7.6% |
18.0%
|
|
Holland Park - Yeronga Qld |
13,316 |
1,191 |
2,889 |
8.9% |
21.7% |
|
Port Phillip Vic |
49,384 |
1,057 |
2,862 |
2.1% |
5.8% |
|
Boroondara Vic |
34,927 |
1,053 |
2,816 |
3.0% |
8.1%
|
|
Brunswick - Coburg Vic |
21,844 |
1,129 |
2,799 |
5.2% |
12.8% |
|
Merrylands - Guildford NSW |
14,886 |
862 |
2,789 |
5.8% |
18.7%
|
|
Brisbane Inner - North Qld |
23,485 |
968 |
2,757 |
4.1% |
11.7% |
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