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Enough demand to prevent Brisbane oversupply

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Your Investment Property | 01 Dec 2015, 11:59 PM Agree 0
Opinions differ on oversupply fears for inner-city Brisbane
  • Matt Gross | 02 Dec 2015, 02:48 PM Agree 0
    What an absolute nonsense that reflects the opinion of someone with a vested interest in selling apartments. In August this year there was around 14,000 apartments under construction within 5km's of the Brisbane CBD, another 12,500 with D.A that were sourcing finance and about the same number that were proposed. (Note the above does not include student accommodation which will add another 3,000-5,000 into the mix.) The only glimmer of hope in the apartment market over the next two years are those boutique projects that offer something to the Owner Occupier or very well located sites.

    Interstate migration is at its lowest point for decades, international migration has tapered.

    Vacancy rates have increased and weekly rents have softened.

    The RBA has every reason to be nervous as do the local banks who are very cautious on what they will lend on.

    Please spare me the bollocks that the Brisbane apartment market is not going to be oversupplied. We don't have enough cranes for projects...

    The sooner buyers start to discount the sort of nonsense written above and dig deeper, the sooner they will realise what is a genuine opportunity and what is not. The level of spruiking at this stage of the cycle is no different to that which occurred in Gladstone and Mackay, two centres that are paying the price for greed right now.
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