THERE HAVE BEEN 11 PROJECTS OVER 9 STOREYS IDENTIFIED WITHIN THE INNER RING TO BE CURRENTLY UNDER CONSTRUCTION, INCLUDING THOSE THAT ARE NO LONGER ON THE MARKET.
This will amount to 1,534 new apartments to be completed by early 2024 with Woolloongabba, South Brisbane and Kangaroo Point seeing the majority of incoming supply.
It’s important to also understand the increase of deferred development in the first half of 2022, a trend that if continued, will exacerbate supply and demand pressures.
Within six months, 76 projects in the pipeline for Brisbane’s LGA have been deferred. This reflects a sizable increase from just 15 in the 6-months to Dec 2021. Further, for those projects that fall into the deferred status, construction delays were anticipated and identified as a key issue.
Building costs are yet to stabilise and continue to impose a major hurdle for developers. However, construction experts, Rider Levett Bucknall, anticipate that the annual percentage change of construction cost inflation will approximately halve during the 2023 financial year.