Developers pull plug on unit boom
More than $1.2 billion worth of residential developments have been deferred or abandoned over the past 12 months due to fears of oversupply, according to Cordell Building Information Services. The Melbourne market has been hit the hardest with $753 million worth of projects shelved – around 3,000 units. The second largest market is the Gold Coast where residential projects valued at $250 million have been deferred.
The shelving of Melbourne projects has occurred in anticipation of the 4,000 units coming into the market over the next year which BIS Shrapnel says could cause vacancy rates to rise to 11 per cent by June 2004. In Sydney, just $23 million worth of projects have been abandoned and $6 million worth delayed. In Adelaide, projects valued at $20 million have been abandoned and $26 million worth deferred. In Western Australia, projects valued at $15 million have been shelved.