Apartment oversupply hitting Brisbane

Desperate Brisbane landlords offering free rent, gift vouchers, iPads to secure tenants

The city where landlords will pay your removalist costs

 

Yeah this is the part where we say "I told you so"

A couple more months and we'll see plenty more of those overleveraged investors who bought start getting desperate and start selling, if not then banks foreclosing.

 

Yeah same article was posted not long ago elsewhere on the forum.

By the way, I thought a lot of people on PC were recommending Brisbane as the next place to invest because Syd/Melb are 'over priced'.
Can someone explain to me why people on PC are saying Brisbane is a good place to invest when we see this kind of situation? I don't get it.

 

The people here saying Brissy is a good place to buy may not be referring to CBD apartments.

 

Lets put this in perspective...a lot of Sydney/Melbourne people got done by project marketeers who sold them stuff in Teneriffe, Newfarm, etc all suburbs within 4 klms of the city. There is definitely too much supply there...but in some areas the supply is in balance.

So markets within markets.

A similar thing is happeningfor houses in lower socio Logan as there are too many southern investors...

 

Too many southerners .... Full Stop

 

Yep they are crossing the Rio Grande and climbing over fence along the border....maybe it maybe time to elect Trump in Qld .....'ang on let me ask Ivanka @MTR .

What say you?

 

YAWN
Apartments within 5 kms of the CBD.

The only part of that article worth anything was watching the video at the bottom, of the prefab apartments going in at Vista Everton Park.

 

As always location is key. A prime location is likely to increase as population increases. This is especially so Gold Coast anything near the beach goes up regardless of apartment supply but the same principle also applies in Brisbane.

 

When media wants to hype the already hyped "oversupply issue", they'll just make news of anything. And we here on PC hype it even more.
3years ago i saw the same offerings by apartment owners around Ryde(Sydney) when we were looking to rent an apartment.
I didn't hear anything about Sydney oversupply back then and neither there has been one yet.

So why the owners were making those offers?
Because unlike homes, apartments come to market all at once so owners need to attract tenants with such offers.
Does that directly link to an oversupply?, Don't think so. Perhaps only a short term until all apartments are tenanted.

 

I agree with that. Even these articles say that the oversupply will get absorbed within a 12 month period easily. Nothing to worry about here. We on here should be smart enough not to believe everything we hear on the news right? LOL

 

World would've been a lot different if that was the case

 

Maybe....but the downside could be tightening of finance across the board in Brissie....

 

The article might as well say "investors who bought at the very peak are now seeing negative equity situations".

You do stupid/dangerous things you can expect to fall into chaotic situations.

 

Not to defend investing during the peak, but the media loves to flog RE owners, paint them as greedy. I wonder how many actually refused to lower rents.

On a different note, Millenial investors watch this space, Scott Pape's master plan is coming to fruition!

An open letter to the young people of Australia - Barefoot Investor

 

Yep, I remember that article. He has a follow up too If you want to buy a cheap inner city apartment … read this - Barefoot Investor

 

Where is Brisbane beach ? I still have not found it.....surfs flat and all these damn mud loving sea trees everywhere

 

I owned a 1b+1b city riverfront unit.
I sold it 2005, was advertised in 2013 for 20k less.
Floor directly above sold for 10k less than I sold for in May 2017.

So I'd guess things ain't looking bright for apartment market, it's been dead for quite a while and may stay that way for another while.

 

I bought a place off the plan on Felix street back in around 2003. Been rented ever since and doing fine

 

Pockets of market within a market.
Other thing to note is, When media writes a story they mainly talk about city CBD area.
However when an average person reads the article they think of the full suburban circumference of that city.
And you see people then start to wonder whether their property in Logan is affected by this Brisbane apartment oversupply?

For ex. Docklands is well known for apartment oversupply. However always in media it'd been written as Melbourne apartment oversupply. Does that mean prices for apartments in Burwood will drop ? No, totally unrelated - they are two different markets.