According to The Australian Financial Review, high-rise apartments will bear the brunt of a slowdown in housing construction that will hit Melbourne and Sydney hardest, even as detached houses leap ahead in Perth on the back of recovering mining employment, according to the Housing Industry Association's latest quarterly forecasts.
New home starts will contract 19 per cent from 173,000 last year to 139,700 over the year to June 2021, dragged lower by the 41 per cent slump in so-called multi-unit sector starts from 71,600 to just 42,100, as the pandemic slams the brakes on immigration and foreign students who provide much of the demand in the two largest cities.
At the same time, while new apartment starts in Perth will be largely unchanged, detached home commencements will jump 23.7 per cent to 13,320 this year. Although that is still almost half of the 23,560 starts in Perth's 2015 peak, it clearly shows growth is back in the only city that had pent-up demand at the start of the year.
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