A slow-down in development of new apartment buildings, plus a trades and materials shortage,could lead to an undersupply of apartments alongAustralia’s east coast.Market forecasts by Charter Keck Cramer on the Brisbane, Sydney and Melbourne markets predicts the number of apartments completed in 2024 will be about half of what is developed this year.It says this could result in a severe undersupply of new homes in two years’ time which will add further pressure to the rental market.Charter Keck Cramer’s Angie Zigomanis says overseas investors drove previous apartment building booms, but he does not believe there will be the same level of demand for investment even with international borders now open in Australia.He says investment will more likely come through institutional funding in the future.With vacancy rates at historic lows in many regions, the looming shortage of new apartments is expected to make it even tougher for renters to find and afford rental properties.
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