25 May 2016
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A tidal wave of new apartments in Brisbane has analysts on high alert for falling prices and growing vacancy rates as they question whether the market can absorb the deluge of new stock.
Current listings and almost 3000 new apartments expected to come on-stream within the next three months means that Brisbane has about nine months’ worth of supply on the market, and more yet to come.
“If this number pushes out further, and demand drops away, then we will face an oversupply situation.
If demand stays at the current level of around 1030 transactions a quarter, the market could tip into oversupply, according to property research outfit Urbis.
“The next quarter will be the canary in the coalmine to determine whether active supply is getting out of touch with demand,” Urbis market research director Mal Aikman said. “There are now 2769 off-the-plan apartments available for sale in the market … if this number pushes out further, and demand drops away, then we will face an oversupply situation.”
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