QUT property economics professor Chris Eves told Property Observer that Chinese buyers would be unable to settle final payments on off-the-plan units now that their government had introduced measures to keep more money in China.
He also said the 3 per cent stamp duty surcharge for foreign buyers would further dampen overseas demand when it kicks off in Queensland on 1 October 2016.
With overseas demand drying up, the pipeline of local stock would struggle to find buyers.
So will that really cause a 25 per cent drop in prices? Only time will tell.
The National Australia Bank’s Quarterly Australia Residential Property Survey Q2 2016 is forecasting a Brisbane-wide drop of just 1.8 per cent in unit prices over 2017, according to Domain.
It says all capital city unit markets are facing an oversupply, but Perth would be worst hit with a drop of 5 per cent.
So it’s a case of buyer be cautious if you have an inner city abode in your sights.
Want to park your dollars in a safer market? Head north and view our current listings for sale.
