This Blog is designed to provide information about buying or renting apartments in Brisbane, Australia.
Thursday, March 12, 2015
Brisbane Apartment Glut, then Crash
Queensland University of Technology property economist, Professor Chris Eves, has warned a glut in apartments in Brisbane's CBD, South Brisbane and West End would cause a price crash for apartments in 2016.
"I know of one construction company [Hutchinson] that currently has contracts out for 3000 units in those locations and basically when you are looking at those sorts of numbers, you are looking at a serious oversupply, he said.
Professor Eves said research showed there had been a 9% increase in the number of approvals for apartments in inner-city Brisbane in the past year.
"But we are not seeing the same sort of increase in the population," he said.
The crash will hurt major developers, off-the-plan buyers and some banks, but deliver a bonanza for renters and buyers.
"If we see those approval numbers continue, we are looking at the potential of another Gold Coast/Sunshine Coast glut in the unit market."
He said the glut in Brisbane CBD, South Brisbane and West End apartments would peak in 2016, causing prices to drop sharply.