Following is a summary of Australia’s leading newspapers and journalists reporting recently on the Australian real estate market and oversupply predictions.
Inner-city apartment prices could be affected by a wave of new properties coming onto the market at the same time as some off-the-plan buyers struggle to settle on their purchases, Standard & Poor's says. The credit ratings agency has highlighted fears of an oversupply of apartments in Melbourne and Brisbane especially, alongside "settlement risk," caused by tougher bank lending rules.
Australia's apartment boom is reaching its crescendo and all cities, except Sydney, will be in housing oversupply by 2017, forecaster BIS-Shrapnel has warned. "In Melbourne the oversupply will be significant, in Brisbane it will be worse. It is an accident waiting to happen," said BIS-Shrapnel managing director Robert Mellor at the group's six-monthly Building Forecasting Conference.
According to the 2016 Building Industry Prospects report, Melbourne will have an oversupply of more than 20,000 homes by 2017. BIS Shrapnel managing director Robert Mellor said there were record levels of apartment construction in the last 18 months.
A key signal for whether Australia is about to experience its own property market collapse lies in the spike of house constructions, says value investor Roger Montgomery, adding if the United States is anything to go by, we're in serious trouble. After crunching the numbers, Mr Montgomery says the estimated 18 months local overhang is more than the 12 months oversupply the US had prior to the popping of its housing market bubble.
An inevitable glut of high-rise apartments will hit “tens of thousands” of off-the-plan investors in Sydney and Melbourne, a new report claims. The building boom has seen a surge in small apartments in high-rises, which will see an imminent “busting of the apartment bubble”, according to the Australian Population Research Institute report Sydney and Melbourne’s Housing Affordability Crisis: No End in Sight.
MELBOURNE’S apartment market is set to lurch into oversupply next year, piling fresh pressure on property prices, a leading economic forecaster says. Following a four-year apartment construction surge in Victoria, fuelled by investors and empty nesters looking to downsize, high-rise projects are now being completed in their droves. With less demand on the horizon as population growth levels out, BIS Shrapnel forecasts Victoria will have an excess of 22,000 homes by June next year.