Brisbane accounting firm, Chan & Naylor, tries to look at the recent Brisbane apartment downturn and analyses what is really happening in the market.
Brisbane currently has around 1,184,000 residents and 16,000 more people are expected to live in this area every year. To have adequate housing, there should be around 6,500 new houses per year to shelter the growing population. According to research, around half of the demand for new dwellings will be for apartments.
Some say the Brisbane apartment market is now oversupplied by 15% but the Brisbane townhouse and detached housing markets still have limited new supply. This could mean development is still needed. Notably though, apartment prices and off-the-plan and resale sale volumes are dropping.
The city’s rental market is also reportedly oversupplied by 6% in inner Brisbane, resulting to falling weekly rents. However, while the Brisbane detached housing market is booming, the Brisbane apartment market continues to decline. This means detached housing prices, sales volumes and weekly rents are increasing along with the local townhouse market, albeit slower.
Fortunately, new supply of apartments are slowing down but it will take time, probably around three or four years, to absorb the oversupply. The Brisbane apartment market may stagnate this year and for several years to come but detached housing and townhouse markets are expected to keep rising in 2018. It is the perfect time to consult accounting firms in Brisbane to know more about the current property market.
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