Developers are putting a hold on approved residential housing projects because of surging construction costs at a time when Australia is expecting well over a million migrants within the next five years.
According to a new analysis by KPMG Australia, the plateau in property prices combined with about a 30 percent increase in construction costs in Sydney and Melbourne has prompted developers to shelve projects.
In New South Wales (NSW), by the end of March, almost 16,400 housing projects had been approved but not yet commenced. This is about 3,000 more than the same time last year.
The last time NSW saw this level of stalled construction was in 2019 due to the high vacancy rates at the time….