Still high on supply
Dwelling commencements increased to around 52,000, seasonally adjusted, in the June 2026 quarter.
Completions continue to lag commencements, but did increase to 47,000, as a bunch of unit developments hit the market in Sydney.
The number of houses under construction has increased again to around, the strength over the past three years having been driven by Perth and Brisbane.
As for units and townhouses, there is a record number of units under construction across Greater Brisbane, Gold Coast, Redcliffe, Maroochydore, etc.
And there's still a fair amount of pipeline to be worked off in Sydney and Melbourne.
Thus, although the lead indicators have softened considerably over the past 4 months since the Budget - and we have a record number of developers going into insolvency (especially in Sydney) - it will be some time before we see any meaningful increase in rents.
Overall, there were some 248,000 dwellings under construction as at June 2026, so it would be reasonable to expect some rental market softness into 2027 as this wave of supply hits the market.
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