Is a Strata Apartment Shortage Coming Our Way?

Strata Snaps: September 03, 2021

Another short sharp pointer to interesting strata stuff …

It’s been a bit of a rollercoaster for strata apartment developers with varying projections and results on new approvals, building starts, sales, interest rates, and prices, meaning the pundits keep changing their minds about whether it’s boom or bust.

And, that confusion continues with this reporting by The Urban Developer telling us that there’s an apartment lull and it will continue for another 3-4 years.

I’ll let you read their article and form your own views. 

https://www.theurbandeveloper.com/articles/jll-national-apartment-market-overview-2021?utm_source=TUD+-+Daily+Briefing&utm_campaign=a2a5d9f3f7-EMAIL_CAMPAIGN_2021_08_11_01_49_COPY_01&utm_medium=email&utm_term=0_982c36d415-a2a5d9f3f7-195794922

But, some interesting statistics to highlight about the predictions are that:

• it’s expected that there will eventually be about 20,000 new strata apartments finished this year,

• that’s still only about 67% of the number of that were built in the 2017 strata apartment boom: 29,000, and

• JLL project that only 10,500 new strata apartments will be finished in 2022 [or just 35% of the 2017 peak and just over half the 2021 result].

Does this mean strata management and service business and stakeholders will need to factor in a slowing market, or, does the lul give us all a chance to catch up with existing demand?

Thanks … @TheUrbDev

September 03, 2021

Francesco