Many of our inner-city markets have oversupplies of apartments, led by Melbourne where the situation is serious and destined to get worse. There are legitimate concerns about Brisbane, Canberra, Perth and Darwin.
Sydney doesn’t have an apartment oversupply yet, but within two to three years it’s likely to have a big one.
Most of the boom markets which sprung up around resources related towns and regional cities are now in marked decline. In that category are Gladstone, Mackay, Emerald, the Bowen Basin coal towns, several Surat Basin towns, the Hunter region of NSW and several mining towns in Western Australia.
The Gold Coast has just emerged from five terrible years caused by oversupply and Brisbane is much the same however the positive outlook in these areas is for house and land and not units. The Gold Coast unit situation has just come out of it’s oversupply issues and now there are some major developers looking at flooding the market again. I would be avoiding units in these areas.
The BIS Shrapnel report which forecasts price movements in major city markets over the next three years, sees Melbourne prices eventually going backwards, largely because of the oversupply of apartments. It shows Adelaide and Brisbane to be very strong on the housing side of the equation.
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