Australia is building more apartments than ever before right now, and it looks like there’s a whole lot more coming.
All you have to do is look to the skies in any of Australia’s eastern capitals to get an understanding of just how enormous the high rise building boom is.
They’re everywhere, as pointed out by UBS’ Australian economics team, comprising George Tharenou, Scott Haslem and Jim Xu, in a research note released earlier today.
Using the just released ‘RLB Crane Index’, which counts and maps ‘hotspots’ of both residential and non-residential cranes, the number of cranes currently in use for residential construction has rocketed by a cumulative 313% in the last 3 years to a ‘sky-high’ record level of 528 in Q3-2016 – mainly for high-rise units in Sydney, and to a lesser extent in Melbourne and Brisbane.
528 cranes were in use for residential construction across the country in the September quarter — a truly epic number.
To put that figure into perspective, RLB estimates that there were more cranes in use for apartment construction in Sydney, Melbourne and Brisbane (454) than there were in New York, Boston, Chicago, San Francisco, Los Angeles, Toronto and Calgary combined (419).
It not only underlines the scale of the construction boom that is currently underway in Australia, but also why an increasing number of analysts are warning of a potential bust ahead.