The ABS has recently released building activity data that’s useful in highlighting trends in the residential property market.
You will see in the opposite graph that residential building completions are starting to rise strongly as residential building commencements have begun to fall.
Trend figures show the peak in apartment commencements occurred late last year. But now the June quarter 2016 figures are 6% below this level.
Interestingly, completions tend to lag commencements by about a year however more recently this lag has increased primarily due to the larger scale and complexity of apartment projects now underway.
The experts are saying this marks a turning point in a significant property development cycle that has been driven by non-house residential dwellings.
It is predicted this increased supply will have significant impact on residential property values and yields over the year ahead.