The Qld state government have just released a new data set for SEQ which represents the stock of approved and as-yet-unconstructed multiple dwellings.
For example, where 30 townhouses were approved and 10 were constructed, the approval balance included in these results would be 20 dwellings. These dwellings would be counted as one (1) project approval.
Material Change of Use (MCU) multiple dwelling approvals data is a good indicator of the potential supply of predominately attached dwellings in the short to medium term.
Below are 3 tables which summarise the current state of play.
Table 1: SEQ: MCU multiple dwelling approvals – 2018
| Local authority | Project approvals | Dwelling approvals | % dwellings |
| Brisbane | 1,590 | 61,127 | 48% |
| Gold Coast | 743 | 36,282 | 28% |
| Ipswich | 181 | 2,846 | 2% |
| Lockyer Valley | 36 | 332 | 0% |
| Logan | 458 | 7,298 | 6% |
| Moreton Bay | 232 | 8,123 | 6% |
| Noosa | 53 | 924 | 1% |
| Redland | 124 | 2,029 | 2% |
| Scenic Rim | 53 | 349 | 0% |
| Somerset | 22 | 41 | 0% |
| Sunshine Coast | 275 | 7,063 | 6% |
| Toowoomba | 150 | 1,849 | 1% |
| South East Queensland | 3,917 | 128,263 | 100% |
| Projectadvice.com.au + Qld Govt. Stock of approved and as -yet-unconstructed multiple dwellings. As a June 2018. | |||
Table 2: SEQ: MCU multiple dwelling approvals – 2011 v 2018
| Local authority | 2011 dwelling approvals | 2018 dwelling approvals | Change |
| Brisbane | 29,240 | 61,127 | 31,887 |
| Gold Coast | 12,213 | 36,282 | 24,069 |
| Ipswich | 2,785 | 2,846 | 61 |
| Lockyer Valley | 146 | 332 | 186 |
| Logan | 3,716 | 7,298 | 3,582 |
| Moreton Bay | 4,816 | 8,123 | 3,307 |
| Noosa | 594 | 924 | 330 |
| Redland | 2,269 | 2,029 | -240 |
| Scenic Rim | 32 | 349 | 317 |
| Somerset | 17 | 41 | 24 |
| Sunshine Coast | 3,154 | 7,063 | 3,909 |
| Toowoomba | 1,016 | 1,849 | 833 |
| South East Queensland | 59,998 | 128,263 | 68,265 |
| Projectadvice.com.au + Qld Govt. Stock of approved and as -yet-unconstructed multiple dwellings. As a June 2011 v June 2018. | |||
Table 3: SEQ: MCU multiple dwelling approvals by project size – 2018
| Project size | Dwelling approvals | % dwellings |
| Under 10 dwellings | 8,353 | 7% |
| 11 to 20 dwellings | 6,608 | 5% |
| 21 to 50 dwellings | 14,815 | 12% |
| 51 to 100 dwellings | 19,105 | 15% |
| Over 100 dwellings | 79,383 | 62% |
| South East Queensland | 128,263 | 100% |
| Projectadvice.com.au + Qld Govt. Stock of approved and as -yet-unconstructed multiple dwellings. As a June 2018. | ||
A quick summary
- Some 3,900 multiple dwelling projects across SEQ have been approved but still have stock yet constructed. The amount of unconstructed stock amounts to some 128,000 dwellings.
- By our estimates that’s in excess of ten years supply!
- Most of this unbuilt stock is in Brisbane (inner city area mostly) and on the Gold Coast. Revisit last week’s missive here.
- Not surprising, there has been a huge increase in the volume of unbuilt multiple dwelling supply over the last seven years; up by 68,000 from the 60,000 count in 2011. That’s a 113% increase.
- Again, the biggest increases have been in Brisbane and on the Gold Coast.
- A review of the current unbuilt supply finds that three-fifths (62%) are in larger multiple dwelling projects.
The three RPs
These MCU figures also show that many attached dwelling projects are having problems securing enough off-plan sales to start construction.
Our recent work suggests that many suffer from a poor ‘local market match’.
The three RPs are vital:
- Right Product
- Right Price
- Right Promotion
MCU defined
Multiple dwelling developments include relative’s accommodation, dual occupancies/duplexes, flats, units, townhouses, villas, apartments and includes short-term accommodation.
In addition, relocatable homes, tourist accommodation, and dwellings approved in retirement villages/facilities are included where they are self- contained.
Group accommodation where facilities are shared and purpose–built student accommodation are not included.