07 Sep 2017
House shortage in Sydney and Melbourne
Housing markets in Sydney and Melbourne remain fundamentally undersupplied and little impact has seen on the new policies targeting at foreign buyers; says developer Mirvac. Mirvac has witnessed continued growth driven by the high quality pipeline. Ms Lloyd-Hurwitz; Group Chief Executive at Mirvac says; we also expect to benefit from the substantial investment in infrartsucture the NSW and Victorian governments are making; with a number of our residential projects located near proposed major transport lines. The company's return on invested capital (ROIC) in the residential building division was marked at 18 per cent; higher than the 2017's target of 15 per cent. This is because of a small percentage of FIRB international buyers have withdrawn from sales. Meanwhile; these buyers have contributed 24 per cent of Mirvac pre-sales pipeline bringing $2.7bn revenue to the company. The number has decreased by 2 per cent compared with last year. In Sydney; Mirvac will keep its focus on apartments; especially those near the train station. A partnership was signed between Mirvac and the Australian Turd Club to build surplus land next to Canterbury Racecourse. In Melbourne; company shifted its focus on masterplanned communities providing 162 homes at Tullamarine. Residential construction tends to be very sensitive to interest rates. So falling interest rates from late 2011; combined with strong population growth; increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable;mresearch from the Reserve Bank says. The falling number of residential building approvals from last year's peak may lead to a decline of construction activity; the Bank also warned. BIS Oxford Economics has expected a drop of 31 per cent in the level of dwellings from 230;000; to 160;000 in coming three years.
What the Australian construction industry is saying about Sydney Build...
The Perfect Hire team and I thought the expo was fantastic. There was a great mix of people walking through looking at the exhibitions and we have gained a lot of quality leads due to this. We did not hesitate to sign up for the following year when approached to do so.
This expo has 100 percent given us very goods leads we could follow up on. This is the best form of marketing we’ve done so far. We’ve been able to connect with leads that are usually very difficult to get in contact with. We’re definitely coming back next year.
The show has a good variety of content including conference, summit and the exhibition itself. We got some quality leads as well. We will definitely come again next year.
We got some quality leads. The show is managed by very nice organizers. We enjoyed the content and environment of the show a lot.
The show is excellent for the business. There’s lots of good quality people to do business with. This is also the best show we’ve ever been to.
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