BIS Shrapnel predicts ‘substantial’ housing correction

By |
A “substantial correction” is looming for the Australian property market as it faces a housing oversupply crisis.

According to an analysis recently released by BIS Shrapnel, every state except New South Wales is set to go into oversupply within two years.

Among all the states, Queensland is predicted to have the worst figures with an oversupply of 26,400 dwellings by June 2018.

“This is really an unsustainable cycle driven by overbuilding of high density apartments,” said Robert Mellor, managing director of BIS Shrapnel, referring to the record dwelling construction figures coupled with a substantial decline in underlying demand.

“There is going to be a substantial correction, probably not just over the next 18 months, but the next two to three years.”

Melbourne and Brisbane are already starting to show a downturn in investor demand.

BIS Shrapnel is forecasting a decline of -10.6% in national residential building this year, with dwelling commencements falling to 205,150. A further -16.1% fall is expected for the 2017/2018 financial year despite the possibility of further rate cuts.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : flemington , coolbellup , whyalla , kariong , st peters

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here