Apartment oversupply risk in Brisbane, Melbourne: ANZ
Staff ReporterDecember 7, 2020
The ANZ Australian Housing Update for August has noted a risk of apartment oversupply in Brisbane and Melbourne.
The report also said construction activity is also expected to moderate, adding building approvals remain below last year’s peak.
"This suggests that the rapid growth in starts and work done is unlikely to be sustained," the report said.
"However, a tremendous backlog of work will continue to support construction around record levels.
"In fact, the large backlog of construction work presents a risk of oversupply emerging in some markets.
"Significant additions to the supply of apartments are forthcoming in Brisbane and Melbourne, raising fears of settlement risk and eventual price declines."
