Property construction is slowing across the country as the cost of labour rises and an oversupply of apartments means there is less money to be made in new building projects.
Major projects have been halted or stalled in Sydney, Melbourne, Brisbane and Perth to the tune of almost $5bn, reported the Australian Financial Review.
In Sydney, the Brookfield Multiplex construction company has reportedly withdrawn from its contract to build the Greenland City Centre, billed as the tallest apartment block in the city.
Almost all the apartments in the $700m tower have already been sold off the blueprints, but Brookfield reportedly could not see a way to make money from the project.
In Brisbane, the construction of a $1bn apartment tower at 545 Queen Street has reportedly slowed as developers keep an eye on property forecasts which predict a glut of apartments in the city.
On Tuesday developer Mirvac reportedly ceased an agreement to build the $3bn Perth City Link, which would have seen 1,200 apartments built in the city centre.
And in Melbourne cost comparisons show drastic falls in the asking price of luxury city apartments as the supply of property outstrips demand.
Property planning expert Peter Hyland told the AFR that developers were becoming less gung-ho as the market slowed.
He said: ‘I think a lot of people are more cautious now and sensibly so.
‘People are closely looking at who is carrying the risk. People are looking at how the market is slowing and they have to be prudent.’
On Friday property lender Firstmac reportedly announced it was cutting the amount it was prepared to lend to city apartment builders with Firstmac chief executive Kim Cannon saying: ‘It is quite obvious there is going to be a problem in the future.’
That same day, Westpac Bank announced it was stopping all lending to foreign property buyers looking to build apartments
Article originally published at www.dailymail.co.uk by Steven Trask for Daily Mail Australia 29/5/2016