Sales of residential development sites in Sydney fell during fiscal year 2019, hampered by financing difficulties, weakened demand, and construction problems, according to the latest Australian report on residential development. Knight Frank.
Sales of residential development sites fell 38% to $ 5.1 billion, mainly because of the decline in Greater Sydney. The region, where most sites are destined for high-rise buildings, recorded a 50% drop in sales, which stood at $ 1.97 billion.
Sales volumes declined in all other continental states, with the exception of South Australia, resulting in a 38% drop in national statistics.
The recession could be attributed to the lack of interest of major banks in lending to developers and the growing national crisis over flammable coatings caused by events at Opal Tower in the Olympic Park.
Read also: Construction Defects: What Does It Mean for Real Estate Investors?
In addition, the residential development sector has faced fierce competition from alternative asset classes, including offices, hotels, long-term care facilities and student housing. said Knight Frank's director of residential research, Michelle Ciesielski.
Ciesielski feared that fewer housing starts could support the population growth of major Australian cities.
"Strict lending criteria for buyers have now been relaxed, but access to traditional financing remains difficult for many local and offshore developers, resulting in many suspended projects," he said. she told The Australian Financial Review.
While Sydney seemed to have lost the interest of foreign investors, Melbourne and Brisbane witnessed a renewed demand from foreign buyers. Developers and overseas buyers accounted for 42% of total sales volume in Melbourne and 18% in Brisbane.
Read also: Apartments in an apartment push investors to homes
Brisbane has become the favorite haunt of many well capitalized private groups looking for larger-scale development opportunities, said Christian Sandstrom, head of investment sales at Knight Frank, Queensland,
.
"In particular, foreign buyers from major Asian markets in Singapore, Malaysia and China / Hong Kong have re-emerged in search of premium opportunities aimed primarily at higher quality products for investors and investors. to the owners, "he told AFR.
Top suburbs:
end of wall
,
Rockville
,
Darlington
,
Nundah
,
Newcastle
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and then we will arrange for a local Australian mortgage broker to contact you and sort out the problem What features or what types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We respect your privacy and treat all your information seriously – you can check
our privacy policy here
