The RLB Crane Index has noted that 7 out of 10 capital cities in Australia have recorded a decline in the number of ‘cranes in the sky’ since September 2016.
This doesn’t come as a great surprise given the regulatory changes intended to curb the over-supply of high rise apartments in inner Brisbane and Melbourne in particular. Interestingly, while the number of cranes has decreased, the number of development sites has increased.
But how can this happen, I hear you ask? The Crane Index report reflects a move by developers to turn towards smaller-scale projects in the inner suburbs, rather than building towers in the CBD – hence less cranes per building site. This is a promising change of events for many reasons as commented on in our recent blog ‘Increasing supply to tackle growing property values‘
It appears that regulatory changes, along with the measures taken by the State Governments of NSW and Victoria to ease development restrictions in the inners suburbs to increase supply and improve housing affordability are having some effect. Such measures include relaxing height restrictions and increasing the number of dwellings allowed to be built on one block.
Property development is a juggling act for government and councils alike, in keeping a balance between providing supply whilst still maintaining the character and feel of our suburbs. The challenge is to get the balance right, and we feel that as long as development is done tastefully, this is a step in the right direction.
All the best with your Property Planning!