Apartment oversupply - Brisbane

Many are concerned if buying aparments are good investment at the moment. Love to hear your thoughts about apartment oversupply in Brisbane.

 

I wouldn't be looking at off the plan apartments. I can't imagine that people would want to live in them long term, which means loss of rent while searching for new tenants.

Some lenders are considering apartments within certain postcode to be high risk due to possible oversupply. Nocookies

This map may be of interest to you, it shows the location and some information about developments in Brisbane. Brisbane Development Map - BrisbaneDevelopment.com

I am wondering if there might be some opportunities for bargains in the next couple of years. But time will tell.

 

I would say they aren't all the same. Went into a block in West End and they were awful. Tiny 2 beds, paper thin walls and hundreds of them.

Some nice more boutique blocks around however, with good square meterage.

 

Try a search.

If you put in "brisbane apartment oversupply" we won't have to re-cover the same ground.

 

There's a hell of a lot in various stages of construction in the inner city. Also a lot around Garden City. I haven't been north for a while, but imagine Chermside is similar? This will lead to lower rents and lower capital appreciation until they are absorbed by the market. There will also be a ripple effect.

But...
How many have/will be sold to OS investors who don't really care about tenancy?
How many were sold with rental guarantees and how long till those guarantees expire?

 

Welcome Khalid

As you are a buyers agent (from your profile page) who would be on the ground in the market every day, and who also sells OTP developer deals, what are your thoughts on the oversupply?

I am sure the forum would be glad to hear from someone who works in the area in Brisbane and who can share their wisdom

 

i recently had a walk through the street I grew up - 10mins walk from garden city. What used to be quite residential street is now an absolute ghetto since it has been rezoned LMR. Lots of rendered back apartments up to 10 storeys high.. They have no character and appear aged even though 5years old. No parking on the street, litter everywhere.. Very sad
I can only see it getting worse with more development and rezoning..

 

The street would look very different today, and set to look even more different tomorrow. Garden City would have been a mere suburban shopping parish. It's now a shopping cathedral. People have to live somewhere.

I thought LMR was supposed to be a few storeys, not ten? There's not many 10 storey blocks of any age - they're just coming out of the ground now. At least they'll be close to Centrelink, multiple fast food outlets, four food courts and the shopping temple. The one's I've seen are certainly not ghettos - yet.

 

I think my latest read indicated something like an additional 15,000 apartments in the pipeline for Brisbane and surrounding suburbs with some estimates as great as 40,000!! However, I believe a lot of developers with approvals in place are shelving plans to proceed given the crack down by APRA on foreign income loans as well as the additional pressure by the Qld government in recent changes to tax policy. The last thing they need is to commence a project with that sort of pressure on their prospective buyers and it's a well known fact they predominately target foreign buyers and interstate investors.

In any case, at MyPropertyPro we are definitely seeing rents dropping in the inner city apartment market and for my money, I wouldn't be going anywhere near an apartment (particularly OTP) in or around Brisbane until it's washed out a bit. I say that owning a 4 year old apartment in Fortitude Valley which is probably the only purchase I wish I hadn't made out of my whole portfolio at this stage.

I think prices and rents are going to continue to suffer for some time yet and as there is opportunity cost with any purchase I believe there are plenty of better markets (including in and around Brisbane) to be putting your money.

- Andrew

 

Makes it even more suspicious. I enjoy the ability of this forum to weed out the BS.

 

Chronic trouble coming in and around the Valley, Bowen Hills and West End. Stay well clear. If you want an apartment in Brisbane, look 5K+ out of those danger zones and stick to smaller or mid sized developments of 30 - 40 apartments or less....

 

Self regulation at its finest.

No offence to the Moderators

 

2+2 =5
No bs...

 

Interestingly I'm sitting next to a OTP sprinkler financial planner trying to sell my colleagues Newstead apartments to secure their wealth.

 

10k+ comms on offer.

Sounds like a man of integrity

 

I should correct- I'm not trying to sell anything. He might be sprinkling, but he ain't sprinkling magic, or assured wealth.

 

I can't get my hands on enough of them.....bring it on.

 

Why you letting him sell ***** to your clients?

 

Not my clients. My colleagues. He was sponsoring an event. I was just there for the event and was also in his audience. I felt saddened actually. I doubt he will get takers.