• Almost $5bn worth of property deals have fallen through in the past week;
• Nationwide 'oversupply' of apartments is driving prices down and costs up;
• Banks are 'no longer lending money' to developers to build apartments;
• One planning expert said: Developers are more cautious and sensibly so.
Major projects have been halted or stalled in Sydney, Melbourne, Brisbane and Perth to the tune of almost $5bn, reported the Australian Financial Review.
Apartment prices at 673 La Trobe Street in Melbourne have fallen by as much as 24 per cent as housing supply outstrips demand. An apartment which cost $410,000 in 2010 can be bought for $330,000 today.
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.