What do cranes tell us about the property market?

MOST of the cranes dotted across our capital cities are building homes – not offices.

Red-hot demand for apartment living is responsible for 61% of the cranes we see today on our skylines.

It’s a turnaround from six months ago, when 48% were building homes.

Rider Levett Bucknall’s Crane Index tracks the number of cranes that can be seen in Australian cities. Its latest report shows there are 307 cranes, up 15% since October.

Rider Levett Bucknall’s Director of Research & Development, Stephen Ballesty, says demand for apartment living is behind the growth.

“The once ‘great Australian dream’ of owning a quarter acre block is shifting with a preference for apartment living with increased investor activity,” he says.

“Whilst the apartment sector is buoyant, the commercial sector has seen a 4% reduction in the percentage mix of cranes, with a total of three cranes removed from projects since the last (survey).”

Where are most of our cranes?

Sydney is leading the way with 125 cranes – 60 within 5km of the GPO in the city centre – and 67% of them are building apartments.

Sydney also had the biggest growth in the number on residential sites, up 42% since October.

Melbourne was hot on its heels, with 33% growth in the number of cranes working on housing projects.

RLB counted 45 cranes in Melbourne, with 71% of them on residential sites. That’s up from 51% six months ago.

“Four cranes have been dismantled at the Emporium in Lonsdale Street. Melbourne Park has lost one crane but we expect more to return when the next phase of the recently announced redevelopment commences,” the Crane Index report says.

Brisbane is buzzing with activity. The RLB survey shows it has 50 cranes, up 35% since October.

“Residential activity has seen a net addition of 13 cranes within Brisbane,” the report says, with the new ones at sites including Bowen Tce, Kelvin Grove, Windsor, Newstead, Milton and Fortitude Valley.

Activity in Adelaide is being driven by the health sector, which is responsible for 57% of the 14 cranes visible in the city. While cranes have come and gone in the past six months, the total is steady at 14.

Perth is a hive of activity, with 42 cranes at work across the city.

“Showing the largest mix of commercial cranes in the country (43%), four additional cranes were seen during this count,” the report says.

“New cranes have been seen at City Square, 933 Hay Street and Kings Square, offsetting this increase was a crane removed at each of Perth Airport and the Old Treasury building.”

Eight of the nine cranes in Canberra are working on residential projects, most in the Civic area.

Darwin also has just one crane working on a commercial project, at Paspaley’s Charles Darwin Centre Development. The other six are working on apartments.