Brisbane apartments taking longer to sell amid oversupply concerns

first_imgIT is now taking longer than ever to sell a unit in inner Brisbane amid concerns of a looming apartment oversupply.Apartments in Brisbane inner city suburbs are now languishing on average more than two months on the market, according to a report by Place Advisory.Director Lachlan Walker said that’s too long.Unit 8/85 Victoria Street, Windsor is for sale. Picture:“77 days is a long time if you’re a seller,” Mr Walker said.The fastest selling suburbs for apartments in inner Brisbane are Windsor and Newmarket in the city’s inner north, with a median unit price of $437,500 and $405,000 respectively.Units there last about 49 days on the market — still 15 days longer than houses in the city’s fastest selling suburbs.Mr Walker said that was primarily because those suburbs had less apartment stock available.Proximity to the CBD and access to public transport and schools were also major drawcards.Averaging 52 days between listing and sale, Carina is the next fastest selling suburb for apartments, with a median price of $485,000.Mr Walker said the next twelve months would be the biggest Brisbane had seen when it came to apartment settlements.But he said buyers had become more cautious and were spending more time researching a property before jumping into the apartment market.“That’s definitely impacting the existing marketplace,” he said.“It’s almost a four-month period between the initial inquiry and purchase.”“We’ll have the biggest twelve months Brisbane has seen,” .The Reserve Bank of Australia has raised concerns about Brisbane’s apartment market, flagging potential tighter lending standards amid fears a looming oversupply.More from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor7 hours agoBIS Oxford Economics senior manager residential Angie Zigomanis said about 40 per cent of property owners who had bought units off-the-plan in Brisbane in the past five years were now reselling at a loss.BIS Oxford Economics expects 6,500 new apartments will be completed in inner Brisbane by the end of this financial year — doubling the record high set the year before.Based on the current pipeline, in 2017/18, the number of completed apartments is expected to peak at more than 9,000.Mr Zigomanis said this oversupply could translate to a drop in apartment prices of up to 20 per cent in the next few years.The big concern is whether the Brisbane market will be able to cope with the influx in rental stock, particularly with unemployment rising in the state.Queensland’s jobless rate is now the highest in the country — surging from 6.3 per cent in January to 6.7 per cent last month, according to the latest Australian Bureau of Statistics figures.“That’s the one thing holding us back,” Mr Walker said.“We’re all holding our breath.”last_img

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