Taking in a two-year period, the data says Brisbane is expected to see a potential 36,057 more units off a base of 196,414 current apartments. In comparison, Sydney supply is expected to grow by 9.3 per cent with Melbourne to push 11.5 per cent.
CoreLogic analyst Cameron Kusher told realestate.com.au that the sheer volume of supply yet to be completed was a concern.
“We’re already seeing stories of people finding it difficult to settle, with valuations not coming in at contract price,” he said.
But he said the current situation could prove to benefit certain types of buyers, such as down-sizers, first-time buyers and hipsters.
“There’s more demand for housing in the city and developers are changing the product offering, as the new rules are that you can’t sell more than 50 per cent offshore,” Mr Kusher said. “So they have to be mindful of local buyers needs.”
The apartment supply means there’s plenty of bargains for investors, including those who wanted to ‘rentvest’ – buy a cheaper house in an outer suburb and live in the inner city.
“We’re in for a period where we could see fewer projects go ahead, because of constraints on funding and demand,” Mr Kusher said.
If you’re thinking about investing, now is the time to contact our team. And if you’re looking for the perfect place to move to, take a look at our listings for rent.
