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Brisbane apartment prices plunge as oversupply hits the market

Apartments being built. Domain's chief economist Andrew Wilson said the supply of apartments in suburbs such as Brisbane's West End had well and truly outstripped demand — and there was more to come. "Even some of the outer suburbs such as Chermside have had significant levels of development recently and as a consequence supply has moved ahead of demand," he said. "The peak of the unit completions is still to come. "But if we look at the approvals that has declined sharply so when the existing stock is soaked up there certainly will not be a lot of replacement stock coming through." While the latest census figures bumped up Australia's population growth, it wasn't by enough to soak up the nation's housing boom. Unit rent prices remained steady over the quarter at $370 a week but had dropped slightly compared to the same time last year. Dr Wilson said the figures were more bad news for Brisbane unit owners but the oversupply had not been all bad for the economy. "The building boom for apartments has come along and provided well-needed jobs and economic energy so it's not all a negative story," he said. "Following the decline in the mining boom Queensland has been looking for other areas to generate growth." West End property owner Adam Carter bought a unit off the plan in 2013 and despite the negative outlook for owners, said the influx of shops and facilities for newcomers had maintained his property value. "When there's good stock built, people have a choice," he said.




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