Housing supply to ‘significantly’ rise over next 12 months

“At this stage, we can dismiss this [dip],” Mr Reardon said.

“So, a quarter of that data for apartment approvals is not something that’s particularly interesting.

“If we see that continue into the second half of 2019, then we start to become a little bit more interested.”

Looking to the year ahead, Mr Reardon said there are 12 months’ worth of apartments under construction, and another 12 months of apartment building that has been approved but has not yet commenced.

“What we know is that 2019 will remain a record-year for completion of apartments. It’s the amount of work that follows through after that we’re going to be interested in,” Mr Reardon said.

Multi-units

The pipeline of work in multi-units is “significantly” above long-term averages, Mr Reardon added.

“[It is] the first time in a decade the amount of apartments that are being commenced are equal to the number that are being completed, and that’s an important point,” he said.

“It’s likely to continue in that trajectory as well, as that supply of new work coming through pauses until the suite of apartments that are currently being built are sold to clear the market, we won’t see the next wave come through. There’ll be a pause there.

“That’s likely to continue for a couple of years.”

Housing supply

Looking at housing supply, Mr Reardon said that despite predicting a downturn in supply over the next few years, 2020 is still on track to be “one of the best years on record” for housing supply.

“It’s a long way back from where we have been in 2018, but still one of the best years we’ve got,” he said.