Monday, May 1, 2017

Brisbane apartment sales slow

The AFR on 27 April 2017 had a story on page 39 about apartment sales slowing in Brisbane and Melbourne.  "Slower off-theplan apartment sales in Melbourne and Brisbane have resulted in fewer projects staring construction, a sign the apartment markets in these two cities may have peaked."

The story says Brisbane is worse than Sydney and Melbourne.  "While it has 11,000 units due to be completed between late 2017 and 2022, current pre-sales of apartments have slowed forcing developers to abandon projects.  ... Only 52% of the 5,897 apartments currently marketed have been pre-sold."

There is good news.  "Despite many off-the-plan sales having extended settlement periods, this has not translated into substantial settlement failure across the market.  However, projects completed later int he cycle may be exposed to higher levels of settlement risk than those approaching completion."

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