A major bank claims it could be years before the flood of supply is absorbed... Brisbane hits median house price record...
Commonwealth Bank raises oversupply concerns for Brisbane and Melbourne
Oversupply fears for the Brisbane and Melbourne apartment markets have again reared their head, with a major bank claiming it could be years before the flood of supply is absorbed.
According to an article in Fairfax media yesterday, the Commonwealth Bank’s Commbank Property Insights Summer Edition estimates Australia’s major capital cities have 80,000 apartments under construction, with another 117,000 approved or being marketed in off the plan deals.
Like Reserve Bank of Australia claimed earlier this year, the report claims inner city Brisbane and Melbourne are likely to be the two markets most affected by the increase in stock.
“These two locations will be subject to rising vacancy and reduced rents, leading to drops in property values and greater settlement risk," Kevin Stanley, CBA’s corporate financial services head of property strategy and research, said in the report.
"It’s likely to be a number of years after the 2017 peak of completions before population growth can absorb these new apartments, so vacancies can return acceptable levels and allow positive growth in prices and values,” Stanley said.
The report predicts Melbourne could see up to 120,000 new apartments over 734 projects completed in the next two years, while Brisbane could see 34,000 apartments across 192 projects.
Sydney could see 88,000 new apartments across 538 projects in the next two years, but the report claims there is a more even distribution in the harbour city with only 7% located in the CBD.
Brisbane hits median house price record
A new record high for Brisbane’s LGA median house price shows the growing level of confidence in south east Queensland’s real estate market.
According to figures from the Real Estate Institute of Queensland (REIQ), Brisbane’s median house price grew by 0.8% to $615,000 over the September quarter, passing the previous price record of $610,000 it set during in the three months to June.
The median unit price in Brisbane LGA grew 1.2% to $430,000 over the quarter.
“It’s been difficult for areas of the state that were heavily reliant on mining to find their feet, but we’re starting to see indicators that suggest we are heading towards firmer ground,” REIQ chief executive officer Antonia Mercorella said.
“Confidence in the residential house market is growing with sales activity up over the quarter across almost all southeast Queensland regions,” Mercorella said.
According to REIQ, sales activity for houses in the Brisbane LGA increased 5% over the September quarter to the highest level seen since 2012, while unit sales increased 13%.
Oversupply fears for the Brisbane and Melbourne apartment markets have again reared their head, with a major bank claiming it could be years before the flood of supply is absorbed.
According to an article in Fairfax media yesterday, the Commonwealth Bank’s Commbank Property Insights Summer Edition estimates Australia’s major capital cities have 80,000 apartments under construction, with another 117,000 approved or being marketed in off the plan deals.
Like Reserve Bank of Australia claimed earlier this year, the report claims inner city Brisbane and Melbourne are likely to be the two markets most affected by the increase in stock.
“These two locations will be subject to rising vacancy and reduced rents, leading to drops in property values and greater settlement risk," Kevin Stanley, CBA’s corporate financial services head of property strategy and research, said in the report.
"It’s likely to be a number of years after the 2017 peak of completions before population growth can absorb these new apartments, so vacancies can return acceptable levels and allow positive growth in prices and values,” Stanley said.
The report predicts Melbourne could see up to 120,000 new apartments over 734 projects completed in the next two years, while Brisbane could see 34,000 apartments across 192 projects.
Sydney could see 88,000 new apartments across 538 projects in the next two years, but the report claims there is a more even distribution in the harbour city with only 7% located in the CBD.
In depth: Bringing in over a billion in settlements
MPA hears from the director of a brokerage that has topped the ten figure mark in settlements last financial year.
MPA hears from the director of a brokerage that has topped the ten figure mark in settlements last financial year.
Brisbane hits median house price record
A new record high for Brisbane’s LGA median house price shows the growing level of confidence in south east Queensland’s real estate market.
According to figures from the Real Estate Institute of Queensland (REIQ), Brisbane’s median house price grew by 0.8% to $615,000 over the September quarter, passing the previous price record of $610,000 it set during in the three months to June.
The median unit price in Brisbane LGA grew 1.2% to $430,000 over the quarter.
“It’s been difficult for areas of the state that were heavily reliant on mining to find their feet, but we’re starting to see indicators that suggest we are heading towards firmer ground,” REIQ chief executive officer Antonia Mercorella said.
“Confidence in the residential house market is growing with sales activity up over the quarter across almost all southeast Queensland regions,” Mercorella said.
According to REIQ, sales activity for houses in the Brisbane LGA increased 5% over the September quarter to the highest level seen since 2012, while unit sales increased 13%.
In depth: 4 website marketing mistakes brokers make
Did you know that there are literally thousands of people every month in your local market that are searching for mortgage information
Did you know that there are literally thousands of people every month in your local market that are searching for mortgage information
