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HTW view on Brisbane apartment market
There has been a lot of talk about our inner city unit
market with an oversupply situation that’s graduated
from 'looming' to 'inevitable'. This sector is a huge
concern. There are still heaps of projects that are yet
to come online or are in the planning phase. They are
also predominantly investor driven and this could be
a recipe for a lot of heartache – particularly as a large
percentage of buyers are interstate and international
investors. Add to this the tighter restrictions on
lending to foreign investors and you can see where it might all be heading. As we’ve been saying for
some time – in terms of inner city units, the best per
formers are, and will continue to be, those projects
designed with owner-occupiers in mind.
If you’re wondering how tenant demand is tracking,
we can con rm current data shows vacancy rates
for houses at 2.5% and units at 3.2% (unit vacancy
increased by 0.3% year-on-year). The combined vacancy rate for all property types is 2.7%. The
general rule is any result below 2% demonstrates an
under supply of rentals, 2% to 3% seems balance,
and over 3% represents oversupply. From the
numbers above, it’s easy to recognise where the
weak sector is in the market.
See June Month in Review
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