Owner occupiers in the apartment market on the rise across the country compare to investors, according to a national survey by Urbis.
Apartment sales in all major markets – except for Sydney – favored owner occupiers over investors during the first three months of the year. In particular, owner occupiers accounted for 65% and 42% of sales in the Gold Coast and Perth, respectively. The comparable figure stood at 34% in Brisbane. Meanwhile, Sydney saw local state investors make up 43% of total sales followed by owner occupiers (35%).
The figures could be driving the increase in larger apartment product, according to Clinton Ostwald, national director of property economics and research at Urbis. “With changes to foreign investor banking regulations, developers are starting to move away from investor stock, and are tapping into the local market.”
Total sales decreased slightly in the quarter, down from 1,380 across inner and mid-regions, a reduction of 11%. However, the Gold Coast and Perth markets still registered an increase of 33% and 18% respectively.
Total apartment approvals also dropped in the first three months of the year with 6,461 units approved, compared to 12,621 in the previous quarter. Urbis said the rest quarter of the year is traditionally slow for approvals – but the Brisbane market registered the greatest drop in approvals, down from 2,686 in the previous quarter to 306 new approved apartments.
““There are still over 63,000 apartments under construction in actively selling developments nationally. The future delivery pipeline has slowed in line with the market, however once current supply has been built it will be important to be ready for the next phase of the apartment market cycle,” Ostwald said.