Australia saw an “unusually high” month for apartment and unit commencements in August, according to recent figures from CoreLogic.
“We saw the total value of new development applications in the pipeline over August recording an estimated $17.5 billion dollars,” said CoreLogic commercial analyst Eliza Owen on Wednesday. The figure is 19% lower than July, when the proposal for a $7 billion airport in Victoria pushed the construction value of new pipeline projects to $21.7 billion.
“Of the new pipeline applications coming in across Australia, 42% of the total construction value came from civil engineering projects, while 36% came from apartments and units,” she added.
Comparatively, there was $5.6 billion worth of construction commencing in August – nearly half (46%) in the apartment and unit space. Owen said this figure is above the 6 month average share (31%) of apartment and units typically being built.
“The surge is partially due to the contract being let on a $1.5 billion residential housing estate in the Ryde council of New South Wales,” she added. The project, known as the Ivanhoe Estate at Macquarie Park, is expected to be completed in 2027, and “will be developed with more than 3,000 units, including at least 950 social housing units and 128 affordable rental units.”
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