High demand for office, hotels and student accommodation

Whilst the number of new apartments being built has fallen over the past year, many apartment projects are now being redesigned for other uses including office, hotels and student accommodation particularly in Melbourne.

Developers are making a big push towards targeting owner occupiers as opposed to investors. Sydney marketing firms are being more selective of the projects they take on, focusing on properties in a lower price point that are within reach of first-home buyers.

“There has been an increase in planning submissions lodged, reflecting both lapsed approvals being resubmitted, and developers changing schemes to better suit current demand trends and more specifically target owner-occupiers with smaller projects, larger apartments and higher quality finishes,” said Mr Warner JLL’s head of residential research for Australia.

Brisbane and Perth are predicted to lead the next economic and population growth while price growth is expected to take longer to return in Sydney and Melbourne, but lower investor activity could see the rental market turn around much quicker.