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QLD Where is the Brisbane apartment oversupply?

Discussion in 'Where to Buy' started by ej89, 2nd Jul, 2015.

  1. ej89

    ej89 Well-Known Member

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    Hey guys,
    I know there's a bit of an oversupply of a couple of areas specifically West End so I have a couple of questions.

    Which specific suburbs are going to be oversupplied with apartments?
    Where can I find this information?
    And what does this do to current old apartments?

    e.g. There are established apartments in great locations selling 200k cheaper than new apartments, and these ones aren't too old too..Do you stay away from these or are these the ones you pick up as there is a lot of room to grow with new pricing being established for apartments in the suburb?

    thanks,
    EJ
     
  2. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Personally i think Brisbane is a house market as opposed to units for CG. If you can afford a house and it can fit into your strategy, risk profile etc then i would be looking for a house. Just my opinion though. I'm not saying units cant perform well in Brisbane though. If i had to get a unit, i would be very cautious and make sure i'm buying it under market value, something that i can add value to and far away from any hint of over supply. Definetly not high rise with a big strata.
     
    Last edited: 2nd Jul, 2015
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  3. Azazel

    Azazel Well-Known Member

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    Older units in a smaller complex with a higher land component can still do well.
    Nothing wrong with a 2 bedroom in a complex of 6 for example, walking distance to a train station or bus, within 20mins to the City.
     
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  4. KDP

    KDP Well-Known Member

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    I share this view as well. Nothing wrong with the right unit, can be a cheaper way to get into the market. Also helps with land tax as well for those nearing their limit.
     
  5. vbplease

    vbplease Well-Known Member

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    Imo there is an oversupply in the inner city and inner suburbs.

    The cheaper 70's brick unit complexes (no lift, no pool) have remained the same price for the past 18months.. while houses in the same suburb have grown up to 20%. With more units being built I can't see growth happening anytime soon..
     
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  6. nth brisbanite

    nth brisbanite Well-Known Member

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    Nundah is becoming oversupplied
     
  7. chindonly

    chindonly Well-Known Member

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    Heaps in the Valley. Couple of towers just built and about 5 under construction.
     
  8. Azazel

    Azazel Well-Known Member

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    I've seen plenty disappear under $300k, not many around under $350k now. Point me to them @vbplease!
     
  9. Hanison

    Hanison Well-Known Member

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    2 bed unit 5kms from cbd.

    Currently on the market asking $11k less than purchase price in 2010.

    Fair enough owner paid stupidly over what it is worth to begin with but it still doesn't look good.

    Even at 11k discount I feel it's still 30- 40k above fair price.

    Do not want.
     
  10. JDP1

    JDP1 Well-Known Member

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    There certainly are a lot built recently and in the pipeline. However demand seems to keep up with supply? It's only oversupplied if demand can't keep up with supply.
    This valley complex announced a sell out today...hearing more stories like this with apartments having no problems finding buyers...
    http://www.theurbandeveloper.com/gurners-fv-project-sold-except-penthouses/
     
  11. Azazel

    Azazel Well-Known Member

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    Got a link if you don't want it?
    Watch how quick it disappears once it's on here ;) Actually, that could be another revenue stream @Sim
     
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  12. ej89

    ej89 Well-Known Member

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    Thanks.
    Specific suburbs?
    I can't believe the prices and the results of the OTP in FV announced today ay. Crazy
     
  13. Hanison

    Hanison Well-Known Member

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    I bought in same complex for 90k less 2 years after.
     
  14. Coxy89

    Coxy89 Active Member

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    Little report from Urbis from 3rd quarter last year which shows the kind of numbers we are talking about in the inner city. Hopefully the link works.

    http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CDwQFjAE&url=http%3A%2F%2Fwww.urbis.com.au%2Fwp-content%2Fuploads%2F2014%2F12%2FSample-BRISBANEINSIGHTS-03QTR14-Dec14.pdf&ei=P7aVVb6kEoHHmwXF_KbADw&usg=AFQjCNGmFKSN4h0DmyXD8t4NtPnREl_iJg&sig2=hNeRJeESOxpqX3l_AUSK1w&bvm=bv.96952980,d.dGY&cad=rja

    They don't seem to be having any issues selling them though, how long that will last who knows.

    Apparently Metro are readying themselves to be listed on the ASX. I'm not very familiar with companies going from private to listed but is that essentially them divesting from the business by diluting their share of the company? Risk mitigation strategy being implemented?
     
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  15. vbplease

    vbplease Well-Known Member

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    I was referring to 2 bed, 1 bath, 1 car in Gabba, Greenslopes, Coorparoo, Annerley areas.. I think under $300k disappeared more than 18 months ago. But a great deal seem to be stuck around $320-$330k for quite a few years now..
    Link - Greenslopes
    Coorparoo
    Gabba
     
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  16. Azazel

    Azazel Well-Known Member

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  17. WinDyz.

    WinDyz. Well-Known Member

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    Hi Guys... Is buying established old 2 unit bed in Brisbane around Coorparoo still good ? Rental yield doesn't look too bad.
     
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  18. Leo2413

    Leo2413 Well-Known Member Premium Member

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    HI WinDyz,

    It could be. Depends on many things. Your strategy, plan, financial situation, current portfolio, risk profile. Before knowing this stuff IMHO its not possible to answer the question well.
     
  19. willair

    willair Well-Known Member Premium Member

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    Maybe if you went for a walk and look what is happening from the start of logan rd right up too the Coorparoo may give you an idea and the new redevelopment at stones corner,they did not set the transport links and tunnels and there is less then m-r 40,000 plus cars per day that use that small road..50 houses on that strip..
    Plus the market itself tells itself when is enough,and from the otp sales data that's not happening,and when it does they stop building..imho..
     
  20. vbplease

    vbplease Well-Known Member

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    I agree the development from Buranda down to Coorparoo will give the area a massive lift.. But my outlook for the older units isn't positive. Rental vacancies for these units are a nightmare outside the peak rental periods. I don't trust the sqm website - local agents are more reliable.