Number of new apartments crashing in Qld
THE apartment glut in Queensland appears to have spooked developers with planned unit and apartment developments only valued at less than a third of what they were just one year ago.
Data from CoreLogic's Cordell Construction Monthly show that although the construction sector has grown, the number of new apartments and units in the planning phase had crashed.
Across the state there were 52 apartment and unit developments in the new project phase with a combined construction value of $450 million last month, compared to 76 projects with a construction value of $1.5 billion just a year before.
Commercial research analyst at CoreLogic Eliza Owen said it was no surprise that planned projects had appeared to cool down.
"The new project phase is very responsive to market conditions," Ms Owen said.
She said changes in the market like increased scrutiny on risky lending from the Australian Prudential Regulatory Authority could have had a big impact.
"I think developer activity is responding to perceived risk," she said.
"If they are expecting certain investor loans to decline then they are less likely to develop the same amount of apartments."
14 Of the 52 Queensland apartment and unit projects currently in the new project phase were in Brisbane and four were in Logan.
Apartment and unit investors have had a tough 12 months across Brisbane, with values stagnant or even dropping in many inner city neighbourhoods.
Although planned construction of new apartments appears to be cooling in Queensland there was still a lot of new construction projects planned across Australia.
The total number of new projects recorded by CoreLogic across Australia over March was 1707, a jump of four per cent in just a month.
Civil engineering made up 35 per cent of these planned projects, and apartment and units accounted for 27 per cent.