Slower construction
There's been a notable decline in the average number of persons per dwelling over the past couple of years.
For this reason, even without the immigration taps switched on, more dwellings are needed, and indeed bond deposits taken in Sydney haven't slowed at all this year, in spite of the disruption.
Yet new apartment building are being supplied at anything like the same rate as they were only three years ago.
The latest figures for the September quarter reported another huge decline in construction work done in New South Wales and Victoria, perhaps in part due to lockdowns.
The construction cycle can take 5 to 10 years to work its way through, such is the lead time and lag associated with the dwelling approval process, pre-sales, through to the construction phase and completion.
Bookmark this one: a surprise apartment shortage in Sydney and south-east Queensland by the end of next year?
Engineering to the rescue
Despite the decline in attached dwelling construction, overall construction held up well in Q3, despite the lockdowns, at $54 billion (only -0.3 per cent for the quarter).
The better-than-feared result was partly thanks to engineering and infrastructure work continuing in Victoria.
