Matusik, who is often engaged by developers to write reports that are provided to potential purchasers, states the following in a seminar given for Urban Pacific at Fernbrooke on 28 May 2008:
- one in three new apartment projects fell over in 2007. The attrition rate could be as high as 50% this year.
- the cost to provide new inner city apartments is much higher now than suburban detached housing. i.e. $575,000 for 2 bed apt (85sqm/1 car space) versus $385,000 for 3 bed house (225sqm/320 sqm allotment)
- overall today investors make up less than 30% of the market.
- 80% of detached houses are held by owner-residents as is 50% of our semi-detached product, whilst over 70% of attached product is owned by investors.
- nearly 70% of Australia’s attached dwellings is occupied by residents under 30 years of age