Can inner Brisbane apartment prices fall by 25 percent?

Can inner Brisbane apartment prices fall by 25 percent?
Can inner Brisbane apartment prices fall by 25 percent?

A senior Queensland academic has told the Australian Financial Review that inner Brisbane apartment prices could fall as much as 25 percent over the next 12 to 18 months.

Chris Eves, professor of property economics at the Queensland University of Technology, said overseas buyers who had purchased off-the-plan in the past six or seven months might not be able to settle final payments now that China has introduced measures to stem capital flow.

"Developers will have to put these apartments on the market and with the lack of demand they will have to discount their prices. Some developers will go out of business – this always happens in oversupply situations," said Professor Eves who first warned of oversupply in March last year.

He advised estate agents were telling him prices and rents were already falling.

Adding further pressure on foreign buyers, he said, would be the new 3 percent stamp duty surcharge which kicks off in Queensland on October 1.

"Brisbane developers have gone overboard with amount of stock in the pipeline and thinking the offshore demand would just continue," he said.

{mijopolls 145}

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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Brisbane Apartment Market

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