QLD Brisbane Property Q4 2016

When you consider that multiple cashed up Australian developers have shelved Brisbane projects in the past 6 months due to serious concerns about settlement risks, I'd be very surprised if the Chinese or Singaporean developers who are buying up land, do much with it, at least for the next few years.

Building additional high density in Brisbane right now just doesnt pass a basic feasibility test. There are already tens of thousands of apartments under construction in Brisbane, and while its a decent sized city, it just doesn't have the ability to absorb even more supply right now and over the next 12 months or so. It would require that a much higher percentage of migrants settled there than currently do so... and it would also require that a lot more retirees moved there - and that both groups of potential buyers wanted apartments . Neither of those things are going to happen as Brisbane just doesnt offer the right employment opportunities on the same scale as Sydney and Melbourne, and retirees interested in buying apartments are much more likely to be considering the Gold Coast or Sunshine Coast.

But even if none of those issues existed on the demand side, there's also the fundamental problem of commercial funding - very very very difficult getting commercial funding for large projects right now , and has been for @ 12 months or more.... that wont change until all the current pipeline is delivered.

 

From residex suburb profile report.
Yes i have a house there and yes according to residex reports, Cth bank app, and recent sales those percentages are correct.

 

I agree with you partly in the case of the link that I posted that was student accommodation and that is a new one so they are intending to go ahead if they get da approval.
I also think that a lot of the Asian developers are more open to the Asian market and know how to aim their product towards that and that's why they are more bullish.
But yes some of the purchases would be shelved for a few years and they are just land banking.

 

Brisbane apartment sales collapse, settlements now key focus for developers

 

similar scenario in Perth..I expect other capital cities to follow, oversupply...ouch

{Note - this thread continues here: QLD - Brisbane Property 2017}