Brisbane is beginning to recover from the unit oversupply, but it’s still in a precarious position.
“The oversupply of apartments in Brisbane is starting to get back to an almost-normal level, though it’s probably still a few courses away from getting back to normal,” says Damien Lee, head of acquisitions at Caifu Property.
“But it wouldn’t take much to put it into oversupply again, based on some more big projects coming through, so in Brisbane and its surrounds we’re still tagging the land side of things.”
The house market does in fact seem to be flourishing, in contrast to the unit market, with values rising at strong rates.
“We’re seeing fantastic price growth in the housing market, from middle ring into the suburban ring, based on the satellite city factors that they’re planning in,” Lee says.
Areas outside of Brisbane continue to be the stars of the Sunshine State. Southeast Queensland has been great for interstate investors, given the affordability of properties in that area, the significant population growth and the available opportunities in the job market. While the Gold Coast continues to perform wonderfully, however, it may also be in danger of oversupply.
“The Gold Coast is about to come into a heavy oversupply of apartments with approval and construction underway, but there’s a limited supply of new residential land available on the Gold Coast as well,” Lee says.
The luxury market seems to be slowing down, but ultimately buyers are still getting quality houses at far lower rates than in Sydney and Melbourne.
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