Apartment supply shortage to push rents higher

Australia’s troubled apartment pipeline has probably passed its trough with a 45 per cent slump in completions last year, but new apartment supply will remain tight for at least another two years until construction and financing costs stabilise, a JLL report warns.

Completions of new apartments in the mainland state capitals and Canberra dropped to 8378 in the year to December, almost half of the 15,159 figure a year earlier, the commercial real estate agency’s Apartment Market Overview Q4 2022 report shows.